On Friday afternoon, MicroStrategy‘s share price experienced a notable increase, reaching $341.14, following a tumultuous 24-hour period during which the stock had plummeted by 40%. In a significant move, the firm, recognized as the largest corporate holder of Bitcoin globally, revealed earlier this week that it had acquired 2,138 bitcoins, with each unit priced at approximately $97,837. The acquisition signifies an investment nearing $209 million for the software intelligence firm, highlighting the company’s eighth consecutive week of steady bitcoin acquisitions.
MicroStrategy has announced its most recent acquisition, increasing its total Bitcoin holdings to 446,400. The company has amassed these assets at a cumulative cost of approximately $27.9 billion, resulting in an average purchase price of about $62,428 per bitcoin.
Earlier this month, the company secured a prestigious position on the Nasdaq 100, an index that tracks the leading 100 non-financial companies listed on the Nasdaq. The company has surpassed the returns of Bitcoin and Nvidia, delivering a performance that exceeds double that of its competitors.
Under the leadership of notable Bitcoin advocate Michael Saylor, the company has consistently emphasized the transformative possibilities of Bitcoin. “Bitcoin addresses issues.” “Bitcoin can help everybody,” Saylor stated during the Bitcoin 2023 conference held in Miami last year. Bitcoin has established its presence in the financial landscape. Bitcoin represents a significant aspect of what lies ahead.
The firm’s strategy for accumulating bitcoin has come under scrutiny. In a recent interview with Business Insider, an expert characterized the strategy as “a leveraged vehicle for holding bitcoin in the guise of a software company.” This assessment suggests that the company’s bitcoin investments are speculative, bringing volatility and risk rather than providing shareholders with a reliable business model.