MicroStrategy Buys Another $147 Million Worth of Bitcoin

MicroStrategy, the world’s largest corporate holder of Bitcoin, announced its latest acquisition of the market’s largest cryptocurrency.

Per an SEC filing submitted on Monday, between August 1 and September 24, the firm and its subsidiaries purchased approximately 5,445 Bitcoin for about $147.3 million in cash. The average price per coin, inclusive of fees and expenses, was approximately $27,053.

With this recent purchase, MicroStrategy has swelled its coffers to an aggregate of about 158,245 Bitcoin purchased at an average purchase price of approximately $29,582.

The aggregate purchase price for MicroStrategy’s Bitcoin holdings has amounted to $4.68 billion, per the filing.

While MicroStrategy's ongoing accumulation of Bitcoin once again underscores the company's confidence in the asset as a store of value and a long-term investment, the continued bear market also means that it is significantly in the red on its historical investments in the first cryptocurrency.

With Bitcoin down 1.7% on the day and trading just above $26,100 at the time of writing, the fiat value of Bitcoin held on MicroStrategy's balance sheet is currently standing at roughly $4.1 billion.

The firm previously bought 12,333 BTC for $347 million in June 2023, at an average purchase price of $29,668 per BTC.

MicroStrategy began acquiring cryptocurrency back in August 2020, with co-founder Michael Saylor stating at that time that the primary motivation was to use it as a hedge against inflation.

Earlier this year, Saylor said the company’s strategy “is to buy and hold Bitcoin, and the key for us is to be consistent, transparent and responsible in the pursuit of that strategy.”

MicroStrategy saw its first profitable quarter since 2020 in Q1 2023, primarily attributed to a one-time income tax benefit, sustaining profitability in the second quarter with $22.2 million in net income—despite a $24.1 million impairment charge on its Bitcoin holdings.