- MicroStrategy’s Bitcoin holdings reach 244,800 BTC, now valued at $9.45 billion.
- Market response muted despite MicroStrategy’s $1.11B Bitcoin acquisition.
- Bitcoin trading volume drops 15%, indicating limited market impact from the purchase.
MicroStrategy has once again made a move in the crypto market. The company announced on Friday that it has acquired an additional 18,300 Bitcoin (BTC), valued at approximately $1.11 billion. This latest purchase increases the firm’s total Bitcoin holdings to 244,800 BTC, worth around $9.45 billion at current market prices.
The recent acquisition was revealed in a U.S. Securities and Exchange Commission (SEC) filing. Michael Saylor, MicroStrategy’s executive chairman, confirmed the purchase, highlighting that it is one of the largest in the company’s history.
This move aligns with MicroStrategy’s ongoing debt leveraging to expand its cryptocurrency holdings.
Following the announcement, MicroStrategy’s stock (MSTR) experienced slight volatility during premarket trading. As of Friday morning, MSTR was trading at $131.05, reflecting a modest increase of 0.21%.
Despite the scale of the Bitcoin purchase, traders did not exhibit a significant reaction, and Bitcoin’s price remained relatively stable. BTC was trading at $57,836, with a 24-hour range between $57,354 and $58,534.
Additionally, trading volume for Bitcoin saw a 15% decrease over the last 24 hours, suggesting a lack of immediate market impact from the news.
This acquisition comes shortly after MicroStrategy announced a Bitcoin purchase funded through a $800 million private offering of convertible senior notes.
The firm acquired 11,931 BTC through this offering, emphasizing its strategy of using debt to increase its Bitcoin reserves. These convertible senior notes are unsecured and senior, meaning they have a higher claim priority over other debts but are not backed by collateral.
MicroStrategy’s continued investment in Bitcoin highlights its commitment to a strategy that intertwines its corporate treasury with the volatile cryptocurrency market.
However, the market’s muted response indicates a wait-and-see approach by investors regarding the potential long-term benefits of such a strategy.
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