MicroStrategy increases bitcoin holdings to 629,376 amid market fluctuations

In a strategic move, MicroStrategy, the prominent bitcoin treasury company based in the United States, augmented its bitcoin holdings by acquiring an additional 430 bitcoin last week. This purchase was led by Executive Chairman Michael Saylor, who facilitated the acquisition at an average price of $119,666 per bitcoin, culminating in a total expenditure of approximately $51.4 million. Following this latest acquisition, the company's bitcoin treasury now stands at a substantial 629,376 bitcoins, which were originally purchased at a lower average price of $73,320 each. Despite recent fluctuations in the market, which saw a significant decline in bitcoin prices down to about $115,000, this move positions MicroStrategy's bitcoin assets to be valued at an estimated $72 billion. Additionally, Saylor announced a revision in MicroStrategy's at-the-market equity issuance guidance. Previously, the company had indicated a firm stance against issuing shares while the stock traded below 2.5 times its modified net asset value (mNAV), primarily to alleviate equity-holder concerns regarding potential dilution. However, the new guidance introduces flexibility that permits the issuance of equity below this threshold, should the company determine it beneficial. Following these updates, MicroStrategy shares experienced a decline of 2.2% in premarket trading and have dropped more than 10% over the preceding week, although they remain up approximately 20% year-to-date.