• MicroStrategy has acquired 6,455 Bitcoin (BTC) for roughly $150 million between February 16 and March 23.
• The company prepaid the principal of its loan from Silvergate Bank which was previously secured with 34,619 BTC.
• Michael Saylor, MicroStrategy’s founder remains bullish on BTC as an asset outperforming traditional assets such as gold, silver, bonds and others.
MicroStrategy Acquires Bitcoin
MicroStrategy recently announced that it had acquired 6,455 Bitcoin (BTC) between February 16 and March 23 for a total of approximately $150 million. This brings the total amount of BTC held by the pro-Bitcoin firm to 138,955 BTC worth around $4.14 billion at an average price of $29,817 per coin.
Prepayment of Silvergate Loan
The company also said that it prepaid the principal of its loan from Silvergate Bank which was previously secured with 34,619 BTC. With this payment, these coins have now been released back to MicroStrategy’s holdings. The loan from Silvergate was taken in March 2022 for a total amount of $205 million.
Michael Saylor’s Bullishness on Bitcoin
Michael Saylor, MicroStrategy’s founder remains bullish on Bitcoin as an asset outperforming traditional assets such as gold, silver, bonds and others. A tweet from him showed that since his company adopted the BTC strategy in early 2021 it has gained over 900%. He also noted that Bitcoin replaces the broken banking system with something better in reference to recent banking crisis involving crypto-friendly banks like Silicon Valley Bank and Signature Bank among others.
Raising Funds Through Stock Sales Agreements
In addition to its acquisition of more coins through their bitcoin strategy, MicroStrategy raised funds through stock sales agreements with Cowen and Company LLC and BTIG LLC between January 1st and March 23rd for a total amount of $339.4 million. However this news had no effect on the price performance of Bitcoin at the time being currently trading around $27000 with an unrealized loss of over $340 million based on its current holdings value at around $3.8 billion USD .
Conclusion
In conclusion , despite some hiccups along the way , MICROSTRATEGY continues to be incredibly bullish about bitcoin becoming a major reserve asset within their portfolio . Their recent moves prove just how serious they are about investing heavily into bitcoin .