MicroStrategy, a leading developer of bitcoin software, has become one of the largest owners of the digital currency after purchasing nearly 15,400 bitcoins for $15.4 billion. The company now holds approximately 402,100 tokens, equivalent to more than 1.9% of all future bitcoins that will be created.
This latest buy brings MicroStrategy’s total bitcoin holdings to $38.2 billion, representing an average purchase price of $58,263 per token. The acquisition was funded through share sales under the company’s at-the-market program.
According to Executive Chairman Michael Saylor, this purchase is part of a strategy to diversify the company’s treasury and invest in bitcoin as a hedge against inflation and market volatility. Saylor has previously argued that companies like Microsoft should allocate more funds to buying bitcoin rather than paying dividends or engaging in stock buybacks.
Saylor recently presented his case to the Microsoft board, citing the massive opportunity missed by the tech giant over the past five years due to its focus on bonds and stock buybacks. The presentation highlighted the benefits of investing in bitcoin as a way to boost options market liquidity and equity liquidity.
The announcement comes ahead of an expected rebalancing of the Nasdaq 100 index, with MicroStrategy’s inclusion being discussed as one possible outcome. An official decision is due to be made on December 13.
Source: https://finance.yahoo.com/news/microstrategy-added-15-4k-bitcoin-133544607.html