In a continued show of confidence in Bitcoin, MicroStrategy has once again demonstrated its commitment to accumulating the digital asset, making it the fifth consecutive week of purchases for the company.
According to a recent submission to the Securities and Exchange Commission (SEC), MicroStrategy acquired an additional 21,550 BTC last week, investing around $2.1 billion in the process.
With this latest purchase, MicroStrategy’s total Bitcoin reserves now stand at an impressive 423,650 BTC, valued at close to $41.5 billion based on current market prices.
MicroStrategy’s Bitcoin holdings now represent over 2% of the total supply of 21 million BTC, underscoring the company’s strong belief in the future of the cryptocurrency.
Funded through a $2.13 billion share sale as part of its broader $42 billion strategy, this move underscores MicroStrategy’s reliance on share issuances and convertible notes to cement its position as one of the largest Bitcoin holders worldwide.
Factors Driving MicroStrategy’s Bitcoin Acquisition
Some attribute MicroStrategy’s recent acquisition to Bitcoin’s ascent past the $100,000 mark, setting the stage for the company’s latest strategic move.
While Bitcoin is currently trading at $97,501.72, a slight dip of 1.21% over the past 24 hours according to CoinMarketCap, indicators like the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) suggest that the bullish trend is likely to continue.
MicroStrategy’s recent Bitcoin purchase, at an average price of $98,783 per coin, reflects its confidence in the ongoing upward momentum in the market.
Following Bitcoin’s rapid climb from under $70,000, fueled partly by political developments and a favorable regulatory outlook, MicroStrategy remains dedicated to expanding its cryptocurrency holdings.
Unlike the nearly year-long journey to accumulate the first 100,000 coins, MicroStrategy increased its holdings from 300,000 to 400,000 in just two weeks, underscoring its rapid pace of accumulation.
Impact on MicroStrategy’s Stock Price
The significant rise in Bitcoin’s price, accompanying MicroStrategy’s accumulating spree, has propelled the company’s stock to a remarkable 480% year-to-date gain.
However, recent market fluctuations have introduced some volatility, leading Bitcoin to drop below $98,000 and MicroStrategy’s stock to experience a 7.51% decline, currently trading at $365.34.
Rise of Institutional Interest in Bitcoin
MicroStrategy’s strategic Bitcoin acquisitions have not gone unnoticed, as other publicly traded companies are now taking a similar stance towards the cryptocurrency.
For example, Riot Platforms recently announced a $500 million convertible bond offering to boost its Bitcoin holdings, while Marathon Holdings and Semler Scientific are also looking to increase their exposure to digital assets.
Furthermore, Metaplent, known as ‘Asia’s MicroStrategy,’ aims to raise approximately $62 million through its 12th series of Stock Acquisition Rights (SARs) to enhance its Bitcoin portfolio.
These developments underscore a broader trend of institutional players diversifying their investment strategies by incorporating Bitcoin as a key asset.