Michael Saylor’s MicroStrategy Acquires 11.9K More Bitcoin for $786M

Under the guidance of Executive Chairman Michael Saylor, the firm owned a total of 214,400 bitcoins by the end of April. With this recent purchase, their bitcoin stash now amounts to 226,331 tokens. The value of these tokens stands at approximately $15 billion based on current bitcoin prices around $66,000. The company had previously spent an average price of $36,798 per token, equating to roughly $8.33 billion in total.

The latest acquisition by the company came after it secured $800 million through a convertible note offering to institutional investors in place of an initial planned amount of $500 million, which was later increased to $700 million before closing the deal. In March, the firm purchased 9,245 Bitcoins for approximately $623 million, having raised funds through a similar debt issuance.

In 2020, Saylor and MicroStrategy became early adopters of Bitcoin, amassing large and historic holdings. They’ve been pioneers in promoting the use of Bitcoin as a reserve asset for corporate treasuries. Although a few companies have purchased modest amounts of Bitcoin, it’s noteworthy that U.S.-listed Semler Scientific (SMLR) has recently added significant Bitcoin to its treasury, following MicroStrategy’s lead. Like MicroStrategy, Semler Scientific plans to seek additional funds from capital markets to acquire even larger quantities of Bitcoin than suggested by its current market capitalization.

Over the past four years, MicroStrategy’s stock price has increased by a factor of ten since they initiated their bitcoin purchases. Similarly, Semler’s shares have experienced a rise exceeding 60% following their public announcement of bitcoin investments in late May.

Last week, Bernstein began analyzing Microstrategy for its clients, establishing a $2,890 forecast for the stock and assigning it an optimistic outlook. Currently, MSTR is experiencing a 2% increase in value before the market opens, with a share price of $1,507.