The world’s largest corporate Bitcoin holder, MicroStrategy, is still on a buying spree. On Monday, the business intelligence and Bitcoin-focused company disclosed the purchase of an additional 5,445 BTC (appr. $147.3 million). The company acquired its latest stack at an average of $27,053 per BTC or roughly 4% below BTC’s $26,075 at press time.
The latest increase in MicroStrategy’s Bitcoin investment means the company now holds 158,245 BTC (worth $4.12 billion based on today’s price). Notably, the company’s portfolio is currently sitting on unrealized losses, having spent $4.68 billion for its stack (at an average of $29,582 per BTC.)
MicroStrategy has acquired an additional 5,445 BTC for ~$147.3 million at an average price of $27,053 per #bitcoin. As of 9/24/23 @MicroStrategy hodls 158,245 $BTC acquired for ~$4.68 billion at an average price of $29,582 per bitcoin. $MSTR https://t.co/GbJtUoQfXv
— Michael Saylor⚡️ (@saylor) September 25, 2023
The company’s latest acquisition also means it now holds an estimated 0.75% of Bitcoin’s total supply of 21 million.
New Rules Support Corporate Bitcoin Purchases
Since making its first Bitcoin purchase in August 2020, MicroStrategy has steadily grown its exposure to the asset and made BTC a core component of its corporate strategy. Microstrategy’s stock and bitcoin holdings have also vastly outperformed major asset classes since it adopted the Bitcoin strategy.
Meanwhile, the company’s move received a huge boost earlier this month courtesy of new rules from the Financial Accounting Standards Board (FASB). The rules, expected to go into force in 2025, would allow companies to constantly account for the fair value of their digital assets when preparing financial statements. Using fair value accounting principles, companies can report unrealized gains and losses to get an actual benefit on their assets if the price increases.
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