MicroStrategy now owns $4.4B worth of Bitcoin.

MicroStrategy (NASDAQ: MSTR), a US software company, announced its intention to add significantly to its Bitcoin holdings by funding the purchase through a stock sale of up to $750 million. The firm has been accumulating Bitcoin since August 2020, and its CEO, Michael Saylor, is a vocal supporter of the cryptocurrency.

The news of MicroStrategy’s planned stock sale and subsequent Bitcoin purchase led to a surge in Bitcoin’s price, reaching one-week highs in the $29,700s. BTC rose over 4% from its Tuesday lows of $28,500s. (Coin Telegraph)

MicroStrategy also reported positive financial results for the second quarter, with a net income of $22.2 million, a substantial improvement from the previous year’s net loss of $1.1 billion. This turnaround was partly due to a smaller digital asset impairment loss compared to the previous year.

The company’s Bitcoin holdings increased to 152,800 BTC as of July 31st, with an addition of 12,333 BTC during the second quarter. MicroStrategy used cash from operations to bolster its Bitcoin holdings, citing institutional interest, accounting transparency, and regulatory clarity as favorable factors for Bitcoin.

The rising price of Bitcoin and MicroStrategy’s bullish outlook have contributed to the company’s share price increase of nearly 200% since the beginning of the year. The firm sees the upcoming Bitcoin halving rally as a potential opportunity for further gains.

MicroStrategy’s planned stock sale could allow the company to acquire more Bitcoin, further solidifying its position as one of the largest corporate holders of the cryptocurrency in the United States.

The positive impact on Bitcoin’s price shows the potential influence of a buyer of this magnitude entering the market.

Related Story:  MicroStrategy Bumps Up Its Exposure To Bitcoin, Adds $347M

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