MicroStrategy Plans to Buy $750M in Bitcoin, BTC Price Rises Slightly

In its Q2 2023 financial report, MicroStrategy revealed it purchased an additional 467 Bitcoin in July for $14.4 million. So, the company has raised its Bitcoin holdings to 152,800 BTC, with an average purchase price of $29,672 – equivalent to 4.53 billion USD.

With the price of Bitcoin trading in the range of $29,700 – $29,900, MicroStrategy has only made a small profit after nearly 3 years of investing in cryptocurrencies. Previously in June, MicroStrategy announced to buy 12,333 BTC worth $ 347 million because it believes in the potential of this world’s largest cryptocurrency following news that the leading asset management firm, BlackRock, has submitted an application for a Bitcoin spot market ETF.

The company has funded its Bitcoin purchases in part by selling shares. MicroStrategy still believes in Bitcoin’s long-term potential, considering it has good store-of-value attributes because they are relatively limited in supply and do not deteriorate over time.

In the filing with the SEC on August 1, the company also announced that it had reached an agreement to offer $750 million of shares to interested investors, and will continue to spend this fund to buy more Bitcoin.

Bitcoin price had a slight increase after this news, from $29,000 to nearly $30,050 on the morning of Aug 2. This is the highest price reached by the world’s largest cryptocurrency since July 24.