MicroStrategy buys $347M worth of Bitcoin amid market thaw

Zhiyuan Sun8 hours agoMicroStrategy buys $347M worth of Bitcoin amid market thaw“DCA works,” wrote Binance CEO in response to the purchase.6276 Total views3 Total sharesListen to article 0:00NewsJoin us on social networksOn June 28, software analytics firm MicroStrategy announced the corporate purchase of 12,333 Bitcoin (BTC), worth $347 million at the time of publication. After the transaction, the total balance of BTC owned by MicroStrategy increased to 152,333 ($4.52 billion), with an average purchase price of $29,668 apiece. 

The total average purchase price is close to the $28,136 purchase price disclosed in the day’s announcements. The coins were bought between April 27 and June 27. The purchase was partly financed with the issuance of new stock, as the company wrote:“On May 1, 2023, MicroStrategy entered into a Sales Agreement with Cowen and Company, LLC and Canaccord Genuity LLC, as sales agents, pursuant to which MicroStrategy may issue and sell shares of its class A common stock, par value $0.001 per share (“Shares”), having an aggregate offering price of up to $625.0 million from time to time through the Agents.”

As of June 28, MicroStrategy has issued and sold an aggregate of 1,079,170 shares under the agreement for total net proceeds of $337 million. Cointelegraph previously reported on April 5 that MicroStrategy added 1,045 BTC ($29.3 million) to its balance sheet. The company is led by Michael Saylor, who has been an outspoken advocate for Bitcoin and spearheading corporations’ charge to adopt the world’s largest cryptocurrency by market capitalization as a strategic asset.

MicroStrategy has been actively purchasing Bitcoin with the use of cash and stock financing during the crypto bear market, sometimes irrespective of its current price. In Q1 2023, the firm reported its first profitable quarter since 2020 due to a one-time income tax benefit. DCA works.— CZ Binance (@cz_binance) June 28, 2023

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