The company, led by CEO Michael Saylor, has been acquiring Bitcoin since August 2020, when it first adopted the cryptocurrency as its primary reserve asset. As of November 29, MicroStrategy’s total Bitcoin assets had reached an approximate valuation of $6.6 billion. The latest acquisition further raises their average purchase price to $30,252 across their entire Bitcoin portfolio.
In addition to the Bitcoin purchase, MicroStrategy has initiated a $750 million Class A common stock offering. The offering is being conducted in collaboration with financial services firm Cowen and Company. This move comes as part of the company’s broader strategy to continue investing in Bitcoin, as indicated by CEO Phong Le, who previously noted the company’s intent to persist with regular Bitcoin acquisitions.
The announcement of the stock offering and the Bitcoin purchase coincided with a minor early trading setback for MicroStrategy’s shares (NASDAQ:MSTR), which saw a decline of 0.82%. Despite this, the company has previously recorded a substantial profit of $900 million on their Bitcoin holdings when the cryptocurrency’s price was above the critical $30K threshold.
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Source: Cryptocurrency - investing.com
