MicroStrategy Buys $150 Million Worth of Bitcoin
Software giant MicroStrategy has announced its first Bitcoin purchase of 2023, acquiring an additional 6,455 BTC for a total of $150 million.
Key Details
On the evening of March 27, MicroStrategy's Chairman Michael Saylor revealed that the company had made its first Bitcoin investment since December 2022. Specifically, MicroStrategy spent $150 million to purchase 6,455 BTC at an average price of $23,238 per BTC.
As of now, MicroStrategy holds a total of 138,955 BTC, valued at approximately $4.14 billion.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt
— Michael Saylor⚡️ (@saylor) March 27, 2023
Additional Announcements
In addition to its Bitcoin acquisition, MicroStrategy also announced the full repayment of a $205 million loan from Silvergate Bank, a crypto-friendly institution that ceased operations earlier in March. Remarkably, the company paid only $160 million, reflecting a 22% reduction in the loan amount.
With Bitcoin's impressive recovery since the start of 2023, MicroStrategy’s massive Bitcoin portfolio, which was down 45% at the end of 2022, is now only about 9% away from breaking even.
Historical Bitcoin Purchases
MicroStrategy's Bitcoin purchase history is well-documented, with significant investment activity over the past years. The company, under Saylor’s leadership, has faced skepticism for its aggressive Bitcoin strategy in 2022, which led to considerable losses.
Despite the recent purchase, Bitcoin's price showed little reaction to the news of MicroStrategy's acquisition.
