MicroStrategy’s rush to add Bitcoin to its balance sheet continues without pause. As announced in a tweet by company boss Michael Saylor, the IT services company bought another 4,167 Bitcoin (BTC).
As CryptoSlate reported on March 30, the purchase was expected after MicroStrategy announced that the company had borrowed $205 million to buy more Bitcoin.
Aside from Saylor’s tweet, the company also filed a Form 8-K with the SEC, as required.
MicroStrategy’s 129,218 bitcoin hoard
MicroStrategy announced it has secured a loan from Silvergate Bank. $205 million was spent under the agreement, with bitcoin being held by subsidiary MacroStrategy (note: macro, not micro) to collateralize the transaction. The press release also mentioned paying expenses related to the loan and “general corporate purposes.”
According to Saylor’s tweet, the company didn’t use the entire loan amount to buy Bitcoin as a MacroStrategy for about $190 million at an average price of $45,714 per BTC.
MicroStrategy first bought Bitcoin in August 2020, and this latest purchase reinforces its position as the largest known corporate Bitcoin holder, which it has achieved through a mix of self-funding and borrowing. MicroStrategy’s bitcoin holdings now total 129,218 bitcoins acquired for $3.97 billion at an average price of $30,700 per bitcoin.
Self-funding bitcoin purchases from corporate reserves are one thing. But in July 2021, eyebrows were raised when the company announced it would issue a complex corporate bond to acquire more. As a result, MicroStrategy borrowed $400 million to buy Bitcoin.
Bitcoin rebounded over $47,000 on the news
Following the news of MacroStrategy’s purchase, Bitcoin’s market price briefly jumped above $47,000 and is around $45,800 at press time. Bitcoin price has been fairly stable over the past week after falling to $44,350 on April 1st, staying in a range between $46,000 and $47,000.
According to crypto analysts IntoTheBlock, on-chain data shows retail customers are accumulating Bitcoin. Addresses with 0.1-1 BTC increased their balance by 1.47% in just 30 days. Additionally, since the January lows, all clusters of addresses holding less than 1 BTC have increased their holdings to 5.51%.
Since the all-time high of $60,044 on November 10, 2021, Bitcoin is down 32.3%.
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