MicroStrategy continues bitcoin buying spree, lifting holdings to $9.45 billion

(Reuters) - Software firm MicroStrategy acquired bitcoin worth $1.11 billion between Aug. 6 and Sept 12, boosting its total holdings of the world's biggest cryptocurrency to roughly $9.45 billion.

WHY IT'S IMPORTANT

The approval of spot bitcoin exchange-traded funds by the Securities and Exchange Commission in January along with support from Wall Street and figures like Elon Musk has brought the once-nascent asset class closer to the mainstream.

Analysts have said MicroStrategy's purchase of bitcoin to protect the value of its reserve assets has helped strengthen the appeal of the firm's stock, which tends to move in tandem with the digital asset.

CONTEXT

MicroStrategy began buying and holding bitcoin in 2020 as revenue from its software business eased, and it is now the largest corporate holder of the cryptocurrency.

MicroStrategy, which ended 2023 with 190,000 bitcoin on its balance sheet, had indicated that it would increase its exposure.

MicroStrategy's board of directors decided in favor of a 10-for-1 stock split in July, to make it more accessible to investors.

BY THE NUMBERS

MicroStrategy bought about 18,300 bitcoins at an average price of about $60,408 per bitcoin between Aug. 6 and Sept 12.

The company and its subsidiaries held about 244,800 bitcoins as of Sept 12, 2024.

The total holding equates to about $9.45 billion, representing an average purchase price of about $38,585 per bitcoin, including fees and expenses.

MicroStrategy's shares have more than doubled in 2024, while bitcoin has gained nearly 31% year-to-date.

GRAPHIC

(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore)