Earlier this month, MicroStrategy made headlines by announcing plans to potentially inject up to $2 billion into its already massive Bitcoin portfolio. In its Q2 financial results, the company revealed it had acquired 12,222 BTC during the quarter for $805.2 million, bringing its total Bitcoin holdings to 226,500 tokens.
This substantial Bitcoin reserve solidifies MicroStrategy, led by Michael Saylor, as the largest public holder of BTC. At the current Bitcoin value of $61,155, these holdings are worth over $13.88 billion.
MicroStrategy, a software company, communicated its intention to raise up to $2 billion through an at-the-market (ATM) equity offering program with the U.S. SEC on August 1. According to the regulatory filing, the funds would be used for general corporate purposes, including the potential acquisition of more Bitcoin.
On the day of the announcement, Bitcoin traded as low as $62,248, but the news spurred a rally, pushing the price up to $65,593. However, a few days later, Bitcoin’s price dropped to $49,000, although it has mostly recovered and now trades around $61K at press time.
While MicroStrategy has not yet made the anticipated Bitcoin purchase, the crypto community eagerly awaits the move. Intelligence platform Arkham even created a dedicated portal to track MicroStrategy’s BTC acquisitions, further heightening interest.
Crypto market participants speculate that a $2 billion Bitcoin purchase could reignite activity in the current bull market, which has shown signs of losing momentum. In a recent analysis, intelligence platform Santiment suggested that a surge in market excitement could propel Bitcoin back to the $70K range, with a potential new all-time high (ATH) of $75K in the short term.
With MicroStrategy’s potential Bitcoin purchase being closely watched, any announcement from the firm could be the catalyst that pushes Bitcoin back to $75,000.
It’s important to note that MicroStrategy has not explicitly stated that the entire $2 billion will be dedicated solely to buying Bitcoin. The company has indicated that it intends to manage its equity capital carefully while continuing to pursue its Bitcoin acquisition strategy.
Over the past four years, MicroStrategy has invested nearly $8.4 billion in Bitcoin and currently sees a profit of over $5 billion. Its Bitcoin adoption has made it stand out significantly from its peers in the software industry, with 995% growth since 2020.
In just four years, #Bitcoin has empowered @MicroStrategy to rise above the competition. pic.twitter.com/E3uiO6hlZ7
— Michael Saylor⚡️ (@saylor) August 10, 2024