MicroStrategy, the world's largest corporate holder of Bitcoin, executed a massive purchase last week, adding 17,994 BTC to its treasury at an average price of $70,946 per coin. The total cost of the acquisition was approximately $1.28 billion.
The purchase was disclosed in a Monday morning filing and announced via the company's official social media account. With this latest addition, MicroStrategy's total Bitcoin holdings now stand at 738,731 BTC, acquired for a total investment of roughly $56.04 billion. The company's average purchase price across its entire stack is approximately $75,862 per Bitcoin.
The acquisition was primarily funded through capital markets activity. The company raised $900 million through the sale of common stock and an additional $377 million from the sale of its STRC preferred series of stock.
Despite the significant purchase, the company currently sits on an unrealized loss of about $6 billion, as Bitcoin's price experienced volatility and traded just below $68,000 at the time of the announcement. This highlights the inherent price risk in the firm's singular strategy.
The industry remains divided on MicroStrategy's approach, with some analysts criticizing the plan to leverage company shares to buy Bitcoin exclusively. Nonetheless, the purchase is seen as a major vote of confidence in the leading cryptocurrency and may have contributed to price strength observed last week.
