MSTR rallies 10% as MicroStrategy buys $155 million Bitcoin in 10 days

by e_cash_top

MicroStrategy bolstered its Bitcoin reserves by purchasing 3,000 BTC for approximately $155 million within ten days.

This purchase takes the business intelligence and Bitcoin development firm’s total holding to 193,000 BTC, acquired for around $6.09 billion at an average price of $31,544 per BTC.

According to Nasdaq data, the news has positively impacted the early trading of its MSTR shares, which rose by around 10% to $751 as of press time.

MicroStrategy’s BTC purchase

According to a Feb. 26 Form 8-K filing with the US Securities and Exchange Commission (SEC), the firm aggressively acquired its latest BTC tranche between Feb. 15 and Feb. 25 at an average price of $51,813, or $155.4 million.

With its most recent purchase, MicroStrategy’s total BTC is now less than 25,000 BTC short of matching the US government’s holdings at 215,245 BTC, according to the Arkham Intelligence platform dashboard. This purchase also brings the firm within striking distance of controlling a complete 1% of the total supply of the flagship digital asset.

The firm stated that it funded this purchase by selling its shares and the excess cash available at the end of the 2023 fiscal year. As of Feb. 26, MicroStrategy said it has issued and sold more than 1.2 million units of its class A common stock for $750 million, with approximately $137.8 million generated since the beginning of this year.

Meanwhile, this acquisition occurred less than three weeks after the company revealed that it acquired 850 BTC for $37 million in January.

The news has stirred reactions within the crypto community, with some users humorously urging the company to leave some Bitcoin for others and notable influencer Lark Davis remarking on the company’s consistent bullish approach, even amidst high prices.

Notably, MicroStrategy’s official account on social media platform X (formerly Twitter) was breached earlier today and used to promote a fake airdrop of an Ethereum-based MSTR token. This incident resulted in the loss of approximately $440,000 worth of digital assets from unsuspecting followers who clicked on the malicious link.

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