MicroStrategy Resumes Bitcoin Buys After 10-Week Hiatus
MicroStrategy, a software company and one of the largest corporate holders of Bitcoin, has resumed buying the cryptocurrency after a 10-week hiatus. The company snapped up nearly $370 million in Bitcoin between August 24 to August 30, according to a filing with the Securities and Exchange Commission.
The purchase brings MicroStrategy's total Bitcoin holdings to 845,050 coins worth $65.8 billion at today's prices. This move comes after MicroStrategy paused its Bitcoin buys in June to focus on building a cash buffer, buying back its stock, and selling some of its holdings.
MicroStrategy CEO Phong Le had stated that the company is evolving from one-way capital issuance to active capital management, allowing it to move between issuing securities when capital is attractive and repurchasing securities when they trade at accretive levels. The company now has $5.1 billion in its USD Reserve and $1.61 billion in its new USD Cash reserve.
MicroStrategy's approach to buying Bitcoin was initially started in August 2020 as a treasury strategy to boost shareholder returns during the pandemic, and it has since spent over $63.7 billion on buying Bitcoin. The company is now focusing on creating digital credit: high-yield products backed by its Bitcoin holdings.