MicroStrategy Doubles Down

MicroStrategy Doubles Down

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  • MicroStrategy Inc. has made its second-largest Bitcoin purchase to date, acquiring 12,000 Bitcoins for $821.7 million. This recent acquisition has boosted MicroStrategy's total Bitcoin holdings to approximately 205,000 tokens, valued at over $14 billion. The purchase took place between February 26 and March 10, funded primarily by the proceeds from the sale of $800 million in convertible notes through a private sale completed on March 8. Michael Saylor, the chairman and co-founder of MicroStrategy, initiated the company's Bitcoin purchases in 2020 as a hedge against inflation and an alternative to holding cash reserves.

  • MicroStrategy's investment in Bitcoin has surpassed $1 billion in the first quarter of 2024 alone, exceeding half of the total amount spent on Bitcoin acquisitions last year. Since Saylor's decision to invest, Bitcoin's value has surged approximately 675%. MicroStrategy's strategic shift into Bitcoin has not only bolstered its cryptocurrency holdings but also sparked a remarkable resurgence in its share price, which has soared by over 1,000% since the pivot. With a market capitalization now around $25.7 billion, the company has surpassed its previous peak valuation in March 2000. Despite past regulatory challenges, including a settlement with the SEC in December 2000 over accounting fraud allegations, MicroStrategy's embrace of Bitcoin has propelled its market standing to new heights.

Why it matters

Reflecting this optimism, shares of MicroStrategy surged by 6.6% to $1,513.46 in New York.


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