MicroStrategy Bolsters Bitcoin Position With $150M Acquisition In Bear Market

Software developer MicroStrategy has once again reinforced its bullish stance on Bitcoin by revealing that it acquired nearly $150 million worth of BTC between August and Sept. 24.

During this specified period, MicroStrategy, along with its subsidiaries, accumulated over 5,000 BTC—a notably bullish move, given that Bitcoin was trading within a narrow range of $26,000 to $27,000 at that time.

"MicroStrategy, together with its subsidiaries, acquired approximately 5,445 bitcoins for approximately $147.3 million in cash, at an average price of approximately $27,053 per bitcoin, inclusive of fees and expenses," the software developer said in its Monday regulatory filing.

This most recent purchase solidifies MicroStrategy's position as the largest corporate holder of Bitcoin, currently possessing 158,245 BTC acquired at an aggregate price of $4.68 billion, with an average purchase price of around $29,582 per Bitcoin. The software vendor made its largest Bitcoin purchase in the second quarter of 2023.

"As of Sept. 24, 2023, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 158,245 bitcoins, which were acquired at an aggregate purchase price of approximately $4.68 billion and an average purchase price of approximately $29,582 per bitcoin, inclusive of fees and expenses," the filing read.

Last month, MicroStrategy unveiled its plan to sell $750 million worth of MSTR shares to purchase more Bitcoin and filed a notice with the SEC expressing its intention to divest the company's stock to raise the necessary funds.

"As with prior programs, we may use the proceeds for general corporate purposes, which include the purchase of Bitcoin, as well as the repurchase or repayment of our outstanding debt," MicroStrategy Chief Financial Officer Andrew Kang said during the company's second-quarter earnings call.

Despite the prevailing price of Bitcoin as of Monday, MicroStrategy is currently facing an unrealized loss of approximately $548,717,702.40 for its BTC holdings.

However, this setback may not dissuade the software developer from acquiring more Bitcoin in the future, given that its co-founder and executive chairman, Michael Saylor, is a Bitcoin maximalist who often refers to the cryptocurrency as "digital gold."

As of 11:00 a.m. ET on Monday, Bitcoin was trading at $26,155.11, with a 24-hour trading volume that had surged by 92.92% to $12.19 billion. This represents a 1.08% decrease in the last 24 hours and a 4.2% decrease over the past seven days.

BTC's total circulating supply stands at 19.5 million BTC, and its value has increased by 1.58% to reach a $510.15 billion market cap, according to data from CoinMarketCap.