MicroStrategy Surpasses BlackRock’s ETF with Record 205,000 BTC Holdings

MicroStrategy, led by CEO Michael Saylor, has made headlines once again in the cryptocurrency space as its bitcoin holdings soar to new heights. With the recent acquisition of approximately 12,000 bitcoins, totaling around $821.7 million in cash, MicroStrategy now boasts a staggering 205,000 bitcoins in its treasury.

MicroStrategy’s Bitcoin Holdings Reach Unprecedented Levels

This substantial accumulation surpasses the holdings of the largest BlackRock spot bitcoin exchange-traded fund, which currently stands at 197,943 bitcoins.

Between February 26 and March 10, 2024, MicroStrategy completed its most recent acquisition, purchasing bitcoins at an average price of around $68,477 each, inclusive of fees and expenses. The company announced this notable transaction on Monday, as shown on FORM 8-K of the U.S Securities and Exchange Commission, SEC.

MicroStrategy’s Bitcoin Accumulation Strategic

MicroStrategy financed its recent purchase by tapping into $781.1 million from a recent private offering of convertible senior notes, supplemented by an extra $40.6 million from surplus cash reserves. This strategic investment highlights MicroStrategy’s belief in Bitcoin’s enduring value proposition as a hedge against inflation and a store of value.

MicroStrategy’s investment in bitcoins totals an impressive $6.91 billion, showcasing the company’s strategic and steadfast involvement in the cryptocurrency realm. With its bitcoin holdings now valued at over $14.7 billion, MicroStrategy has not only established a substantial foothold in the digital asset market but has also experienced considerable profits amid bitcoin’s surging price.

MicroStrategy’s bullish stance on bitcoin has been reinforced by its meteoric price surge, surpassing $72,000 and setting a fresh all-time high. Despite fluctuations in the market, MicroStrategy remains committed to its accumulation strategy, maintaining an average purchase price of around $33,706 per bitcoin, inclusive of fees and expenses.

Last year, MicroStrategy raised up to $750 million through stock sales, with the notable intention of using these funds to further strengthen its investment in Bitcoin (BTC), adding an intriguing dimension to the move.

MicroStrategy’s Impact on Institutional Adoption of Cryptocurrencies

The ongoing accumulation of bitcoin by MicroStrategy signals the increasing institutional interest in and adoption of cryptocurrencies as viable assets within conventional investment portfolios. 

As pioneers such as MicroStrategy pave the path for incorporating digital assets into treasury approaches, the broader financial realm is undergoing a notable transition toward recognizing the potential of blockchain technology and cryptocurrencies.