MicroStrategy, the largest publicly traded corporate holder of Bitcoin, announced on Thursday, September 12, 2024, that it had acquired additional BTC. Moreover, Executive Chairman Michael Saylor spotlighted the development in a post on X. This acquisition could provide a much-needed push to the Bitcoin price which is currently struggling below the $58,000 mark.
MicroStrategy Acquires More Bitcoin
In the recent purchase, MicroStrategy acquired 18,300 BTC, according to a Form 8K filing today. The purchase was made at an average price of $60,408 per BTC, amounting to approximately $1.11 billion. This acquisition brings the company’s total Bitcoin holdings to 244,800 BTC, acquired for around $9.45 billion at an average price of $38,585 per BTC.
MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U
— Michael Saylor⚡️ (@saylor) September 13, 2024
The company also reported achieving a Bitcoin yield of 4.4% quarter-to-date (QTD) and 17.0% year-to-date (YTD). Furthermore, it continues its strategy of utilizing Bitcoin as its primary treasury reserve asset. MicroStrategy’s ongoing BTC accumulation is primarily funded through debt issuance. Earlier, the company stated that it intended to use proceeds from these acquisitions to purchase additional BTC.
The firm’s recent issuance involved convertible senior notes, which are unsecured but rank higher in priority compared to other debt obligations. This strategy allows the company to take on debt to fund its BTC purchases while maintaining flexibility, as the notes are not backed by collateral.
Following today’s announcement, MicroStrategy stock price showed a modest increase of 0.29% to $131.35 during pre-market trading on Thursday following the announcement. Meanwhile, Bitcoin price witnessed a slight uptick after MicroStrategy’s announcement. It recovered from a low of $57,695 to $57,915 by press time.
However, the crypto behemoth’s 24-hour gains remained limited at 0.12%. Over the past 30 days, BTC has lost 5% in value, trading below the $60,000 mark. Despite the recent decline, the increased institutional interest in BTC has sparked optimism among market participants that these strategic investments could lead to a price recovery.
Also Read: Michael Saylor Hints at Bitcoin “Sale” Amid Recent Price Drop
Other Institutional Players Mimic The BTC Buying Spree
Other firms have also continued expanding their holdings. BTC mining company Marathon Digital Holdings (MARA) remains optimistic about the crypto pioneer’s long-term potential, as it holds 26,200 BTC. MARA also added BTC worth $100 million to its holdings on July 23, 2024, just ahead of the Bitcoin Conference 2024. The miner’s strategy of HODLing its mined BTC further demonstrates the growing trend of crypto institutional adoption.
Meanwhile, Japanese company Metaplanet, often dubbed “Asia’s MicroStrategy,” has been aggressively acquiring BTC as well. According to the official announcement on August 13, the Japanese company purchased 57.103 BTC for 500 million Japanese yen (US$3.3 million), at an average price of 8,756,107 yen per BTC. This purchase brought Metaplanet’s total Bitcoin holdings to 303.095 BTC, worth approximately 2.95 billion yen.
Moreover, Metaplanet has taken advantage of Japan’s low interest rates to fund its BTC purchases. The firm recently raised 1 billion Japanese yen at an annual percentage rate (APR) of just 0.1%, allowing them to continue buying BTC. Hence, MicroStrategy’s position as the leading BTC holder could be threatened as more institutional players join the fray.
Following the August purchase, Metaplanet still holds 500 million yen, which it plans to use for further Bitcoin acquisitions. This approach leverages the Japanese yen carry trade. For context, it’s a strategy in which companies borrow at low rates domestically and invest in higher-yield assets globally.
Also Read: Crypto September Outlook: $600M BTC Outflows, Upcoming Fed Rate Cut, And New Market Opportunities
Credit: Source link
