MicroStrategy, a software analytics company, revealed on June 28 that it has purchased 12,333 Bitcoin for the company, which was currently worth $347 million.
Following the transaction, MicroStrategy now possessed 152,333 BTC in total, valued at $4.52 billion, with an average purchase price of $29,668 per coin.
In response to the announcement post, CZ said, “DCA works”
The $28,136 purchase price revealed in the day’s announcements is fairly close to the overall average purchase price. The coins were purchased in the months of April 27 and June 27.
MicroStrategy buys additional BTC
According to what the corporation wrote, the transaction was partially financed via the issuance of additional stock.
“On May 1, 2023, MicroStrategy entered into a Sales Agreement with Cowen and Company, LLC and Canaccord Genuity LLC, as sales agents, pursuant to which MicroStrategy may issue and sell shares of its class A common stock, par value $0.001 per share (“Shares”), having an aggregate offering price of up to $625.0 million from time to time through the Agents.”
As of June 28, MicroStrategy had issued and sold 1,079,170 shares in total under the arrangement, generating $337 million in net profits.
MicroStrategy’s BTC holding
Previously, on April 5, MicroStrategy had increased its balance by 1,045 BTC ($29.3 million).
Michael Saylor, the company’s CEO, has been a vocal supporter of Bitcoin and has led the drive for businesses to adopt the biggest cryptocurrency by market capitalization as a strategic asset.
During the crypto bear market, MicroStrategy has been actively buying Bitcoin using cash and stock financing, sometimes regardless of its current price.
Due to a one-time income tax gain, the company declared its first profitable quarter since 2020 in Q1 2023.
Writer’s Corner
The strategy adopted by MircroStrategy is called Dollar Cost Averaging which makes the average price of their entire holding to be below the current market price even though they acquired the new BTC around $31,000.
You can adopt the same strategy and buy in bits using Kumo wallet which gives you access to a wide range of cryptocurrency and allows you to buy BTC with Naira and without stress.
About Kumo
Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.
Kumo wallet is your all-in-one social payment app for seamless payment solutions.
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