Microstrategy Acquires 12,000 Bitcoins for $821.7M

Following the bitcoin (BTC) jump to over $72,000 to create a new all-time high earlier today, MicroStrategy has announced its purchase of an additional 12,000 BTC to increase its bitcoin portfolio.

MicroStrategy’s Bitcoin Latest Bitcoin Purchase

Announcing the purchase on X, MicroStrategy’s Executive chairman, Michael Saylor, said the company had spent an extra $821.7m to acquire more 12,000 bitcoins at an average price of $68,477 per BTC. The purchase started on 26th February, same the day the company announced its last purchase of about 3,000 BTC for $155 million. And It lasted for 13 days till 10th March.

Before the bitcoin purchase, Saylor announced that MicroStrategy had raised an extra $800 million through convertible notes to invest in Bitcoins. These notes bear an interest of 0.625% per annum which can be paid in arrears on March 15 or September 15 each year till 2030 when the notes will mature. As part of the agreement, the notes can also be bought back before the maturity date. 

MicroStrategy’s Current Bitcoin Holdings Value

Currently, MicroStrategy now has 205,000 bitcoins acquired for $6.91 billion at $33,706 for per coin. By current market price, the company’s bitcoin portfolio is worth around $14.76 billion. This is 113.6% unrealized profits of about $7.85 billion. Notably, MicroStrategy now holds 0.98 percent of bitcoin’s total supply. 

Following the latest purchase announcement, Saylor was interviewed by CNBC, where he argued that Bitcoin is going to eat Gold. He further noted that the crypto asset has all the great attributes of Gold and none of the bullion’s defects.

Saylor explained that Bitcoin is a digital property that is superior to Equity or real estate because it is digital, available, global, ethical, and useful to millions of companies and billions of people.

With bitcoin price going up to about $72,000, it is now trading at above $1.4 trillion market capitalization, trades solidly now as the 13th largest currency in the world, and continues to exhibit bullish signs just some days before the bitcoin halving event set to happen next month.