MicroStrategy Acquires Additional Bitcoin Worth $190 Million Through Its Subsidiary
MicroStrategy (MSTR), a publicly-traded business intelligence firm, has bought an additional lot of 4,167 Bitcoins, the company said on Tuesday.
Michael Saylor, the company’s CEO, said on Twitter that the acquisition was completed via MacroStrategy, a wholly-owned subsidiary of MicroStrategy.
According to the exchange notice, the transaction occurred between February 15 and April 4, 2022. Which MacroStrategy acquired for around $190.5 million in cash, at an average price of $45,714 per Bitcoin, inclusive of all fees and expenditures. Now, the parent firm has disclosed that it owns around 129,218 Bitcoins, with MacroStrategy owning approximately 115,110 of them.
The acquisition news comes just after MacroStrategy LLC secured a loan to increase its BTC holdings. Silvergate Bank provided MacroStrategy with a $205 million interest-only term loan secured by Bitcoin. And it seems as if the corporation has already put the financing to its declared purpose.
According to Bitcoin Treasuries estimates, the parent firm now holds 111 percent of its market capitalization in Bitcoin. Additionally, MicroStrategy now owns 0.615 percent of the entire Bitcoin supply after today’s BTC increase. This is an increase from the 0.5 percent of the finite 21 million tokens revealed last week.
It’s worth mentioning that MicroStrategy remains the biggest public business with this level of BTC exposure. As a result, the price movements of BTC and MSTR are inherently highly correlated. BTC is trading in the green at a price close to $46K at the time of writing.
Bitcoin bonds are not acceptable
Meanwhile, Saylor, a well-known proponent of Bitcoin, is not endorsing Bitcoin bonds at the time. “I’d love to see a day when individuals offer Bitcoin-backed bonds in the same way they sell mortgage-backed securities,” the MicroStrategy Inc. creator said in a recent interview. At the moment, the market is not yet ready for it. The next best option was to get a term loan from a large bank.”
Saylor said that El Salvador’s Bitcoin bond is a “hybrid sovereign debt instrument, rather than a pure Bitcoin-treasury move.” Additionally, he said that this has “its own credit risk and has nothing to do with the Bitcoin issue at all.”