Since the beginning of the year, the largest corporate holder of cryptocurrency, Microstrategy, has spent $361.4 million purchasing 12,800 bitcoin at an average price of $28,233.
Microstrategy’s total Bitcoin holdings have increased to 152,800 from 132,500 in February with the upcoming issuance of $750 million in shares.
For general company objectives, including the purchase of bitcoin and operating capital, and, subject to market circumstances, the buyback or repayment of loans.
Since the beginning of the year, their stock price has increased thrice, from $150 to roughly $470, making this the first time since 2021 that they are raising funds via shares to acquire Bitcoin.
They had previously taken out interest-bearing loans totalling $2.8 billion, with repayment scheduled for 2025–2028; in November, a $250 million loan defaulted for reasons unrelated to the company’s value.
However, with the recent surge in Bitcoin’s value, they are once again in the black, as their cryptocurrency reserves are now worth $4.5 billion, much exceeding their debt of around $3 billion.
The company’s $93.3 million in second-quarter gross earnings will enable it to maintain its Bitcoin investments.
As a result, MSTR has become a proxy spot bitcoin ETF, operating at a loss of little over a year and a half. What MSTR will do is unclear, given that this is the first such proxy and one of the first stock issuances to Bitcoin; the company’s equity will be diminished, but its cash equivalent will grow.
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