Key Points
- Michael Saylor’s company, MicroStrategy, acquired 12K BTC, totaling $821.72 million, at an average price of $68,477.
- MicroStrategy’s total Bitcoin holdings stood at 205,000 BTC, equivalent to $9.9 billion, with an average acquisition cost of $33,706.
Michael Saylor, a known proponent of Bitcoin (BTC), has yet again invested in the cryptocurrency. Despite the price of Bitcoin trading below $30,000 at the time, Saylor’s bullish stance remained unchanged.
MicroStrategy’s Bitcoin Acquisition
Data from Lookonchain revealed that Saylor’s company, MicroStrategy, acquired 12K BTC from February 26th to March 10th. The total acquisition cost was $821.72 million, with an average price of $68,477 per BTC.
MicroStrategy’s total Bitcoin holdings now stand at 205,000 BTC, equivalent to $9.9 billion. The average acquisition cost is $33,706 per BTC. Based on current market prices, the profit from these investments could be around $7.9 billion.
The acquisition was funded by the $782 million generated through a recent convertible debt offering. Convertible notes are a form of debt that can be converted into equity at a later stage, commonly used by companies to raise capital.
Bitcoin Holdings and Market Status
As of now, MicroStrategy has more Bitcoin holdings on its balance sheet than financial giant BlackRock. BlackRock has 195,985.31 Bitcoins through its IBIT iShares Bitcoin Trust, which is less than MicroStrategy’s holdings.
The Assets Under Management (AUM) for GBTC has returned to around $28 billion, reaching pre-ETF levels. This is driven by the appreciation in Bitcoin’s price. However, significant outflows from GBTC suggest that investors may be waiting for a resolution or a decline in BTC prices before re-engaging.
At press time, BTC was trading at $71,899.41, with its price having grown by 2.69% in the last 24 hours. The number of bullish bets in favor of Bitcoin has outnumbered the bearish ones over the last few weeks. However, a recent dip in activity on the Bitcoin network could potentially hinder BTC’s growth moving forward.
