On Friday afternoon, MicroStrategy’s share price rose to $341.14, after a rocky 24 hours when share prices tanked 40%. Earlier this week, the firm – the world’s largest corporate holder of bitcoin – announced the acquisition of 2,138 bitcoin, at a price of roughly $97,837 per bitcoin. The buy represents an investment of approximately $209 million for the software intelligence company – marking the company’s eighth week in a row of consistent bitcoin purchases.
MicroStrategy’s latest purchase brings the company’s total holdings to 446,400 bitcoin, accumulated at an aggregate cost of around $27.9 billion, averaging approximately $62,428 per bitcoin.
Earlier this month, the company also won a coveted spot on the Nasdaq 100, which monitors the top 100 non-financial firms listed on the Nasdaq. The company has outpaced the returns of both bitcoin and Nvidia, achieving more than double their performance.
Led by prominent bitcoin maximalist Michael Saylor, the company has long touted the revolutionary potential of bitcoin: “Bitcoin fixes things. Bitcoin can help everybody,” Saylor said at last year’s Bitcoin 2023 conference in Miami. “Bitcoin is here to stay. Bitcoin is the future.”
However, the firm’s bitcoin accumulation strategy has attracted criticism. In an interview with Business Insider, one expert labeled the ploy “a leveraged vehicle for holding bitcoin in the guise of a software company,” indicating that the company’s bitcoin investments were speculative, inviting volatility and risk, rather than offering shareholders a sustainable business model.
