- MicroStrategy acquired 21,550 BTC, bringing total holdings to 423,650 BTC, worth $41.5 billion.
- Riot Platforms, Marathon Holdings and Metaplent are expanding their investments in Bitcoin in line with MicroStrategy’s strategy.
MicroStrategy has once again made headlines with its aggressive Bitcoin (BTC) accumulation strategy, marking its fifth consecutive week of purchases.
According to the recent SEC filing, the company acquired an additional 21,550 BTC last week, investing approximately $2.1 billion.
This latest acquisition brings his total Bitcoin holdings to an impressive 423,650 BTC, now valued at nearly $41.5 billion at current market prices.
For those unaware, MicroStrategy’s Bitcoin reserves represent over 2% of the total supply of 21 million BTC, highlighting its commitment to the cryptocurrency.
Funded by a $2.13 billion stock sale as part of its broader $42 billion plan, the move highlights MicroStrategy’s reliance on stock and convertible note issuances to consolidate its position as one of the largest Bitcoin holders in the world.
What led to MicroStrategy’s acquisition of Bitcoin?
Some believe that Bitcoin’s remarkable rally past the $100,000 mark paved the way for MicroStrategy’s latest strategic acquisition.
Despite briefly crossing the $100,000 mark, the cryptocurrency remains buoyant, trading at $97,501.72, a slight decline of 1.21% over the past 24 hours, according to CoinMarketCap.
Still, technical indicators such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) suggest that the bullish momentum is far from over.
As expected, MicroStrategy’s recent purchase of BTC aligns with this increase, securing its latest haul at an average price of $98,783 per coin.
The move follows Bitcoin’s rapid rise from below $70,000, fueled by Donald Trump’s re-election and anticipation of a more cryptocurrency-friendly administration, further solidifying the company’s commitment to expanding its crypto holdings.
While it once took nearly a year to gather its first 100,000 coins, the company expanded its holdings from 300,000 to 400,000 in just two weeks.
MicroStrategy stock price
This period coincided with Bitcoin’s price rally of 40%, propelling MicroStrategy’s stock to an impressive 480% year-to-date gain.
However, recent market movements have introduced volatility, with BiTC falling below $98,000 and MicroStrategy stock down 7.51%, currently trading at $365.34.
Other institutions join the fray
Inspired by MicroStrategy’s strategic acquisitions of Bitcoin, several other publicly traded companies are now following suit.
For example, Riot Platforms recently announced a $500 million convertible bond offering aimed at increasing its BTC holdings, while Marathon Holdings and Semler Scientific have also expressed similar plans to increase their exposure to cryptocurrency.
Additionally, Metaplent, dubbed “Asia’s MicroStrategy,” is preparing to raise around $62 million via its 12th round of stock acquisition rights (SAR) to strengthen its BTC portfolio.
These movements highlight a growing trend of institutional players to diversify their financial strategies by leveraging Bitcoin as a strategic asset.
