MicroStrategy, the renowned business intelligence firm, has announced the completion of its recent Bitcoin purchase, bringing its total average purchase price close to the disclosed $28,136. The acquisition took place between April 27 and June 27, showcasing the company’s strong commitment to the leading cryptocurrency.
To finance a portion of this significant purchase, the investment firm utilized the issuance of new stock. In an official statement, the company stated:
“On May 1, 2023, MicroStrategy entered into a Sales Agreement with Cowen and Company, LLC and Canaccord Genuity LLC, as sales agents, pursuant to which MicroStrategy may issue and sell shares of its class A common stock, par value $0.001 per share (“Shares”), having an aggregate offering price of up to $625.0 million from time to time through the Agents.”
Since then, the company has successfully issued and sold a total of 1,079,170 shares under this agreement, generating net proceeds of $337 million. This development follows the company’s previous addition of 1,045 BTC ($29.3 million) to its already substantial Bitcoin balance sheet.
Driving this strategic move is the company’s CEO, Michael Saylor, a well-known advocate for Bitcoin adoption. Saylor has been spearheading the charge for corporations to embrace the world’s largest cryptocurrency by market capitalization as a strategic asset.
MicroStrategy’s Bold Bitcoin Purchases Pay Off as Firm Records Profitable Q1 2023
MicroStrategy, the renowned business intelligence firm led by Michael Saylor, has made significant waves in the cryptocurrency market with its unwavering commitment to acquiring Bitcoin, even amidst a challenging bear market. In a strategic move, the company has employed cash and stock financing to bolster its Bitcoin holdings, demonstrating its confidence in the long-term potential of the digital asset.
Despite the prevailing downtrend in the crypto market, MicroStrategy’s resolute approach to Bitcoin investment has yielded promising results. The firm recently announced its first profitable quarter since 2020, a remarkable achievement driven in part by a one-time income tax benefit. This achievement showcases MicroStrategy’s ability to leverage its crypto investments to drive financial gains, emphasizing the growing significance of digital currencies in corporate financial strategies.
Michael Saylor, the visionary CEO of MicroStrategy, has been a vocal advocate for Bitcoin, recognizing its role as a hedge against inflation and a store of value. Saylor’s unwavering belief in Bitcoin’s potential has not only driven MicroStrategy’s strategic moves but also influenced other institutional investors to consider cryptocurrency as a viable asset class.