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MicroStrategy invests $623 million in Bitcoin, now holds over 1% of global supply

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Bitcoin development and business intelligence company MicroStrategy has purchased more than 9,000 BTC for $623 million, according to a March 19 filing with the U.S. Securities and Exchange Commission (SEC).

According to the file:

“MicroStrategy acquired approximately 9,245 bitcoins for approximately $623.0 million in cash, using $592.3 million in offering proceeds and $30.7 million in excess cash.”

With this latest acquisition, the company increased its Bitcoin holdings to 214,246 BTC. These were purchased for an overall purchase cost of approximately $7.53 billion, averaging approximately $35,160 per BTC. The current market value of the company’s holdings is approximately $13.39 billion.

In recent weeks, the Bitcoin development company has secured substantial funding, raising more than $1.4 billion through debt offerings used to acquire the flagship digital asset.

These purchases match upbeat statements from Michael Saylor, the company’s executive chairman, regarding the leading digital asset. He recently said that Bitcoin would overtake gold as the world’s most valuable commodity, noting that BTC has “all the great attributes of gold, but none of the flaws.”

Notably, JPMorgan analysts recently warned that MicroStrategy’s use of debt to buy Bitcoin could exacerbate a market downturn.

MSTR Stocks Fall

Meanwhile, MicroStrategy’s latest acquisition propelled its Bitcoin holdings to more than 1% of the flagship digital asset’s total supply, establishing a pronounced correlation between Bitcoin’s performance and the company’s MSTR stock.

This correlation is more pronounced today as the price of Bitcoin has fallen more than 6% to around $63,000. In comparison, MSTR shares also plunged 16% to below $1,300, sparking concerns among analysts that the stock is overvalued due to its reliance on Bitcoin.

Alpha Spread analysts estimate a staggering 94% overvaluation, assigning an intrinsic value of $84.97 to MSTR. Analysts have highlighted the company’s move toward a Bitcoin-centric approach compared to its core business.

The article MicroStrategy Invests $623 Million in Bitcoin, Now Holds Over 1% of Global Supply appeared first on CryptoSlate.

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