MicroStrategy's Bitcoin Strategy Involves Buying the Dip

MicroStrategy, the software company led by Bitcoin proponent Michael Saylor, has purchased 1,895 more Bitcoin for $180.3 million, according to an SEC filing on Friday.

The company said it made the purchases between April 28 and May 4 at an average price of $95,167 per BTC. It used funds from a stock offering to pay for the Bitcoin.

MicroStrategy sold $128.5 million worth of regular stock and another $51.8 million of STRK preferred shares to raise the necessary capital. These sales were part of a planned offering that has now been completed.

The company plans to continue selling stock throughout the year as part of a new offering. It has already begun selling stock this week.

With this latest buy, MicroStrategy now holds a total of 1895 Bitcoin, which has an aggregate cost of $38.08 billion, at an average price of $68,550 per coin.

At the current Bitcoin price of around $96,000, its holdings are now worth over $52 billion.

Last week, the company made a much larger purchase of 15,355 Bitcoin for $1.42 billion. It has been buying Bitcoin almost every week since the beginning of the year.

So far this year, its Bitcoin investment has returned 14%. Now, it is setting a goal to reach a 25% return and a $15 billion gain from Bitcoin.

MicroStrategy is planning to raise more money, up to $84 billion by 2027, to continue buying more Bitcoin. It will raise this money by selling both stocks and bonds.

The company also has a dashboard on its website that shows all of its BTC data, including its holdings and prices, in real-time.

Saylor continues to treat Bitcoin not just as an investment but as a core part of the company’s financial strategy. As a result, its stock has performed strongly.

At last check, MicroStrategy stock was trading at $377.06, down 5% for the day, according to Yahoo.

Semler Scientific bought more Bitcoin as well

In a similar report, Semler Scientific, a medical risk assessment company, has also bought more Bitcoin. They added about 167 BTC for $16.2 million.

The firm paid an average of about $97,000 per coin for the Bitcoin, which were purchased over a period of 11 days.

Semler Scientific said this is part of its plan to protect against inflation and to also to hold on strong assets. The company also sees BTC as a good way to store value and protect money from losing its worth.

Meanwhile, experts at Bernstein believe other companies may follow the lead of MicroStrategy and now Semler Scientific. They expect more businesses with extra cash and slow growth to begin adding Bitcoin to their balance sheets.

However, they also noted that such purchases would not necessarily influence the price of Bitcoin in the long run.

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