Bitcoin News Today: MicroStrategy Adds 6,220 Bitcoin Units Worth $739.8 Million

MicroStrategy, a prominent business intelligence firm, has recently acquired an additional 6,220 Bitcoin units, valued at approximately $739.8 million. This purchase was made at an average price of $118,940 per coin between July 14 and July 20, as disclosed in a new filing with the U.S. Securities and Exchange Commission (SEC).

This latest acquisition brings MicroStrategy's total Bitcoin holdings to 607,770 BTC, making it the ninth-largest holder of cash and cash equivalents among S&P 500 companies. The company has spent about $43.61 billion, including fees, on its total holdings, which are currently worth over $71 billion at current prices. This move reflects the firm’s ongoing commitment to utilizing Bitcoin as a key asset in its corporate treasury strategy.

From an investment perspective, MicroStrategy’s average cost for Bitcoin is now lower than current market prices, indicating significant unrealized gains. The company’s buying strategy positions it as a leader in adopting digital assets and signals growing institutional confidence in Bitcoin’s long-term value. The software intelligence firm funded its latest Bitcoin purchase using several shares, including at-the-market shares, operating cash, and convertible note offerings.

These share sales are part of MicroStrategy’s ambitious “42/42” capital plan, which aims to raise $84 billion for Bitcoin acquisitions by 2027. This target is double the original goal under the earlier “21/21” plan. To date, MicroStrategy has raised billions by selling shares and convertible notes, with additional funds still available through its ongoing programs. Some analysts believe this premium is justified due to the company’s strong equity-to-Bitcoin cycle. However, others have raised concerns about a possible negative feedback loop from overdependence on Bitcoin valuations. A recent class action lawsuit also claims that MicroStrategy misled investors about its Bitcoin strategy.

It is worth noting that MicroStrategy paused its Bitcoin purchases between June 30 and July 6. The pause in Bitcoin purchases comes as the firm shifted focus from selling common stock to offering perpetual stock to raise capital. Despite the pause, MicroStrategy remains the largest corporate holder of Bitcoin.

Another firm making significant strides with a growing Bitcoin accumulation strategy is Metaplanet. The Japanese financial leader launched this strategy about a year ago and has remained true to it. In the first week of July, it reported a purchase of 2,205 BTC, worth about $238.7 million at the time. As a result of the acquisition, Metaplanet’s total crypto holdings climbed to 15,555 BTC. The firm aims to accumulate 210,000 BTC by 2027, which is approximately 1% of the total supply. This Bitcoin strategy, which mirrors the company’s approach, has driven significant growth for Metaplanet.