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MicroStrategy acquires 11,931 more bitcoin for $786 million

written by Bella Palmer

This most recent purchase followed the firm's $800 million convertible note offering to institutional investors

Software company MicroStrategy (MSTR), the biggest corporate holder of bitcoin (BTC), has acquired another 11,931 BTC for $786 million, according to a Thursday morning press release.

Led by Executive Chairman Michael Saylor, the company as of the end of April held 214,400 bitcoins. This latest acquisition brings the company's total holdings to 226,331 tokens worth just below $15 billion at bitcoin's current price of nearly $66,000. The firm's bitcoins were bought at an average price of $36,798 each, or nearly $8.33 billion.

This most recent purchase followed the firm's $800 million convertible note offering to institutional investors. That offering size was originally to be for $500, then raised to $700 million and finally closed at $800 million. In March, the firm added 9,245 bitcoin for $623 million after raising money in a similar debt issuance.

Saylor and MicroStrategy started accumulating the largest and oldest crypto currency in 2020 and since have attempted to spearhead a movement to adopt bitcoin as a reserve asset for other corporate treasuries. While a handful of firms have added modest amounts of bitcoin to their balance sheet, of particular note is U.S.-listed Semler Scientific (SMLR), which over the last three weeks has not only added bitcoin as a relatively sizable treasury asset, but attempting to tap capital markets to buy bitcoin in amounts much bigger than what its current market cap might indicate.

MicroStrategy shares have gained nearly ten-fold since the company's bitcoin purchases started four years ago. Semler shares are more than 60% higher since the firm revealed its first bitcoin buys in late May.

Last week, brokerage firm Bernstein initiated coverage of Microstrategy, setting a $2,890 price target for the firm's shares with an outperform rating. MSTR is currently up 2% premarket to $1,507.


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