MicroStrategy’s (MSTR) relentless Bitcoin-accumulation spree hasn’t let up one bit. On Tuesday, the Virginia-based behemoth announced via a filing with the U.S. Securities and Exchange Commission (SEC) that its subsidiary MacroStrategy purchased another 4,196 Bitcoin (BTC) – for about $190.5 million in cash.
“MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTR” – Michael Saylor in a tweet on April 5th.
MicroStrategy acquires 4,167 more Bitcoin
Source: MicroStrategy
According to a statement by MicroStrategy, the $190 million dollar purchase was made between February 15 and April 4, 2022. The coins were purchased at a weighted average of $45,714. This hefty transaction was likely made possible through an earlier loan that MicroStrategy had secured with Silvergate Bank, in which the bank had issued a $205 million interest-only term loan to MacroStrategy in the form of Bitcoin-collateralised lending.
Michael Saylor, Chairman, and CEO at MicroStrategy said:
“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin. Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.”
Suffice to say, the company appears to be putting the loan to its stated use – and rather effectively at that.
MicroStrategy now holds 129,218 BTC
MicroStrategy, along with its subsidiaries, now holds a total of 129,218 bitcoins or just over $6 billion on April 5th’s $46,674 price. Furthermore, these holdings account for 0.615% of the total Bitcoin supply, up from 0.5% just a month prior. The latest purchase is one of many that the company has been making consistently throughout the past few years. MicroStrategy has been investing in BTC since April 2020, making purchases every single quarter, oftentimes securing massive loans of $200M or more.
Along with an unwavering bullish perspective for the digital currency, Saylor has also said on several occasions that the company plans to hold the bitcoin long term and has no plans to sell it.
Impact on Bitcoin’s price
Naturally, a transaction of this size does not go unnoticed. Following MacroStrategy’s purchase, the market price of Bitcoin jumped above $47,000, albeit briefly. Unfortunately, this short-lived bounce would prelude Bitcoin’s sharp tumble as of late.
At the time of writing, Bitcoin is trading around $39,620, which equates to a 9.08% dip over the past 7 days. Not exactly ideal for many, particularly for any traders who had been leveraging long. But for long-term HODLers as bullish as Saylor, this is no doubt a fantastic opportunity to stock up on even more BTC.