Funding
MicroStrategy Resumes Bitcoin Purchases, Acquiring $370 Million in BTC
MicroStrategy, the prominent Bitcoin treasury firm, has made a significant return to the cryptocurrency market by purchasing 4,603 Bitcoin at an average price of $80,318 each, totaling $370 million. This acquisition is the firm's first since June 22, following a two-week period without any transactions.
In addition to this purchase, MicroStrategy has previously sold a total of $432 million worth of Bitcoin across five sales since May, as part of its newly implemented Bitcoin monetization program. This strategy is designed to enhance the company's cash reserves and support dividend payments.
Michael Saylor, the chairman of MicroStrategy, noted that the firm increased its US dollar reserves by $29 million in the past week and repurchased $152 million worth of its perpetual preferred stock, STRC, which pays an annual dividend of 12.00%. STRC is currently trading at $96.66, slightly below its par value of around $100.
MicroStrategy remains the largest corporate holder of Bitcoin, having been the first public company to adopt Bitcoin as its sole treasury reserve asset. Saylor's recent sales represent a notable shift in his previous stance, where he encouraged investors to 'never sell' their Bitcoin. He clarified that his advice was personal and that MicroStrategy operates as a public company, which may buy or sell Bitcoin to manage capital.
New Facts on MicroStrategy's Bitcoin Purchases
- MicroStrategy raised $602.8 million by selling 4,531,421 MSTR common shares.
- Of the proceeds, $369.7 million was allocated for Bitcoin purchases.
- The company acquired 4,603 BTC from August 24 to August 30 at an average price of $80,318.
- MicroStrategy's total Bitcoin holdings increased from 840,447 BTC to 845,050 BTC.
- The aggregate purchase cost for MicroStrategy's Bitcoin holdings is reported at $63.73 billion, with an average cost of $75,412 per BTC.
- Additionally, $151.8 million was used for repurchasing 1,557,177 STRC shares, and $50.7 million for STRC dividends.
- As of August 30, MicroStrategy reported $1.61 billion in USD Cash and a $5.1 billion USD Reserve.
FAQ
What recent purchase did MicroStrategy make regarding Bitcoin?
MicroStrategy purchased 4,603 Bitcoin at an average price of $80,318 each, totaling $370 million.
When was MicroStrategy's last Bitcoin transaction before this recent purchase?
The last transaction before this purchase was on June 22, marking a two-week period without any transactions.
What is the purpose of MicroStrategy's Bitcoin monetization program?
The Bitcoin monetization program is designed to enhance the company's cash reserves and support dividend payments.
How much did MicroStrategy increase its US dollar reserves recently?
MicroStrategy increased its US dollar reserves by $29 million in the past week.
What notable change did Michael Saylor make regarding his stance on Bitcoin?
Michael Saylor, previously encouraging investors to 'never sell' their Bitcoin, clarified that MicroStrategy may buy or sell Bitcoin to manage capital as a public company.