MicroStrategy Amplifies Bitcoin Holdings, Secures Over 1% of Global Supply

By: Eliza Bennet

Business intelligence firm MicroStrategy has further deepened its investment in Bitcoin, purchasing an additional 9,245 bitcoins for $623 million. This latest acquisition, as per a recent filing with the US Securities and Exchange Commission (SEC), escalates the company's total Bitcoin holdings to 214,246 BTC, representing more than 1% of the total supply of the premier digital asset.

These holdings, acquired at an average cost of about $35,160 per BTC, currently stand approximately at a market value of $13.39 billion. This aligns with the bullish outlook of company executive chairperson, Michael Saylor, who anticipates Bitcoin outclassing gold as the most valuable global commodity. He praised Bitcoin for possessing all the commendable attributes of gold without any of its drawbacks.

MicroStrategy's aggressive Bitcoin buying spree, fueled by substantial funding with over $1.4 billion accrued through debt offerings, hasn't missed the attention of market critics. Some analysts, including those at the multinational bank JPMorgan, warn that MicroStrategy's dependency on debt for Bitcoin acquisition could potentially magnify market downturns.

Furthermore, the stock market's response to MicroStrategy's crypto-heavy strategy has been lukewarm, as witnessed by a recent decline of over 16% in MSTR shares alongside a Bitcoin price drop. Analysts at Alpha Spread have projected a 94% overvaluation of MSTR, attributing this largely to MicroStrategy's Bitcoin-centric shift from its core business operations.