MicroStrategy continues its aggressive accumulation after completing a new strategic Bitcoin acquisition of 10,645 units during the last week. Michael Saylor, the firm’s Executive Chairman, confirms this massive operation valued at $980.3 million, reaffirming his absolute commitment despite current market volatility.
The technology company acquired these digital assets at an average price of $92,098 per unit, according to official documents filed on Monday. With this bold move, the company’s total holdings now amount to 671,268 bitcoins, acquired for an impressive cumulative total cost of $50.33 billion to date.
To fund this large-scale operation, the firm relied primarily on the sale of shares in the open market. They specifically raised $888.2 million through the sale of common stock, while the rest of the funds came from the sale of its available STRD preferred stock series.
This event marks the second consecutive week in which the company executes a purchase nearing one billion dollars. Unlike previous months where purchases were more modest due to capital constraints, Saylor and his team have pushed aside concerns about dilution to seize market opportunities.
Is MicroStrategy Ignoring Dilution Risks to Accumulate More Assets?
The current strategy prioritizes aggressive treasury expansion over the immediate protection of share value in the short term. By selling equity aggressively to fund these massive purchases, the company seeks to maximize its long-term exposure in the face of an uncertain and changing global economic environment.
On the other hand, this move occurs while MSTR shares remain flat in premarket trading and Bitcoin pulls back to $89,600. Furthermore, the company recently confirmed that it will remain a key constituent of the Nasdaq 100 index, which validates its continued relevance and weight in the financial technology sector.
Will the Company Continue Defying Traditional Investment Norms?
Likewise, MicroStrategy recently sent a letter to MSCI firmly rejecting the proposal to exclude digital assets from its indices. This defiant stance defends the integration of cryptocurrencies into global markets, underscoring its corporate vision that Bitcoin is the ultimate treasury reserve asset for modern companies.
Finally, the firm is expected to continue with this tactic as long as it has fluid access to capital markets. Constant accumulation suggests that, regardless of short-term price fluctuations, management is betting everything on the imminent future appreciation of the market’s leading digital asset.
