MicroStrategy Reveals Another Bullish Plan After Making Biggest Bitcoin Purchase Since 2021

Software developer MicroStrategy revealed it has made the biggest Bitcoin purchase since 2021 in the second quarter of 2023 and shared its bullish plan to sell $750 million worth of stocks, the proceeds of which will presumably be used to purchase more BTC.

MicroStrategy, in its Q2 financial results, revealed that it acquired a significant amount of Bitcoin this quarter.

"The addition in the second quarter of 12,333 bitcoins [is] the largest increase in a single quarter since Q2 2021. We efficiently raised capital... and used cash from operations to continue to increase bitcoins on our balance sheet," MicroStrategy Chief Financial Officer Andrew Kang said

The software maker added that the $347 million worth of Bitcoin acquired last quarter, purchased at an average price of $28,136 per coin, only represents the latest addition to the company's BTC holdings and not the total amount of the crypto asset it purchased.

MicroStrategy has acquired a whopping 152,800 BTC, amounting to $4.53 billion or $29,672 per coin, as of July 31. The company is the largest corporate holder of the world's first-ever crypto asset.

MicroStrategy also seems to raise its BTC holdings after it revealed its plan to raise up to $750 million by selling more stock and use the proceeds to purchase more Bitcoin.

"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," Kang said during the company's second-quarter earnings call.

"Our objective is to find ways to generate incremental Bitcoin for our shareholders and do that with either cash flow from the business or do it through intelligent accretive financings of equity or debt or other intelligent operations," MicroStrategy Executive Chairman Michael Saylor told investors Tuesday.

Saylor, who co-founded MicroStrategy, is heavily involved with Bitcoin and is known as a Bitcoin maximalist.

He has led the company into buying billions worth of bitcoins since the pandemic and has raised money by selling more of the company's bonds and equity.

As of 4:00 a.m. ET Wednesday, Bitcoin was trading at $29,555.51, with a 24-hour trading volume down by 48.49% at $19,725,214,467, representing a 2.17% increase in the last 24 hours and a 1.16% increase over the past seven days.

BTC's total circulating supply stands at 19,445,681 and its value is up by 2.15% at $574,446,374,177 market cap, according to data from CoinMarketCap.