MicroStrategy Purchases an Additional 12,000 BTC as Bitcoin Surges in Price Discovery
MicroStrategy Inc. (NASDAQ: MSTR), amidst the increasing demand for Bitcoin (BTC) from major financial institutions on Wall Street, continues to make significant moves. In a recent announcement during the early New York session, MicroStrategy revealed that it has successfully completed its previous offering, raising $800 million due in 2030 with an annual interest rate of 0.625 percent.
MicroStrategy wasted no time in converting the funds into Bitcoin to further its long-term investment plan. With the proceeds from the offering and its excess cash reserves, the company has acquired an additional 12,000 Bitcoins worth approximately $821.7 million. As a result, MicroStrategy now holds a total of 205,000 BTC, which were purchased for about $6.91 billion at an average price of $33,706 per Bitcoin.
MicroStrategy’s strategic move in the Bitcoin market has proven to be highly successful. As the price of Bitcoin enters the price discovery phase of the macro bull run, the company’s stock market value has skyrocketed to a new multi-year high. After a period of consolidation since the dot-com bubble in the early 2000s, MicroStrategy’s stock experienced a significant rally following the adoption of its Bitcoin trading plan. Today, the company is valued at over $24 billion, with its stock market surging by over 500 percent in the past year.
The surge in demand for Bitcoin investment products, particularly spot Bitcoin ETFs, has contributed to the ongoing bullish sentiment in the market. This influx of cash has led to a textbook example of a demand shock and an inelastic supply curve, driving the price of Bitcoin higher. As of now, Bitcoin price has risen by more than 3 percent, trading at around $72,000. Consequently, many cryptocurrency analysts have revised their Bitcoin price targets upward for this bull cycle.
Furthermore, Bitcoin price has surpassed its previous all-time high in just 40 days since the fourth halving event. In the past, it took approximately six months for Bitcoin price to revisit its ATH after a halving event.
Tags: Bitcoin