Bitcoin Purchase for $26 Million by Strategy Company
In a move that further solidifies its commitment to Bitcoin, MicroStrategy (MSTR) has acquired an additional 245 Bitcoin for approximately $26 million. This marks the company's tenth consecutive week of Bitcoin purchases.
The average price of each Bitcoin in MicroStrategy's updated holdings is now $69,740, calculated by dividing the new aggregate cost basis of approximately $42.13 billion by the new total number of Bitcoin holdings, which now amounts to 616,800 BTC. This is a slight decrease from the previous average price of $70,681.
The purchase was made despite recent market volatility triggered by geopolitical tensions, with Bitcoin's price increasing since MicroStrategy's previous Bitcoin purchase, which was made at an average price of $105,856 per coin during the week ending June 22.
The company raised funds for the acquisition through its at-the-market (ATM) equity offering program and also sold 84,354 shares of MSTR preferred stock, bringing in $8.7 million. Additionally, $17 million was raised through the sale of 166,566 shares of STRK preferred stock.
Bitcoin trades at $101,654 during premarket trading, up 0.71% over the past 24 hours. However, MicroStrategy's shares were down 1.55% in premarket trading.
Despite the slight dip in the average price of Bitcoin in MicroStrategy's holdings, the company's Bitcoin yield is still approaching its revised 25% target for 2025, with the current year-to-date yield at 19.2%. This significant yield underscores the potential value that Bitcoin holds for MicroStrategy.
The acquisition follows U.S. airstrikes on Iranian nuclear facilities, with Bitcoin recovering from weekend lows of $98,000. Geopolitical developments continue to be processed by markets, potentially affecting Bitcoin's value.
MicroStrategy's consistent Bitcoin purchases over the past nine weeks demonstrate a strategic approach to investing in the digital currency, despite the volatile market conditions. The company's commitment to Bitcoin is a testament to its belief in the digital currency's long-term potential.
