MicroStrategy‘s CEO, Michael Saylor, announced the acquisition on Twitter, stating that it was done via MacroStrategy, which is a wholly-owned subsidiary of the company.
The exchange notice discloses that the transaction was made between February 15 and April 4, 2022, according to the information in the notification. MacroStrategy spent about $190.5 million in cash for the Bitcoins, which was purchased at an average price of $45,714 per Bitcoin, including all fees and expenditures associated with the acquisition. MacroStrategy controls around 115,110 Bitcoins out of a total of approximately 129,218 Bitcoins held by the parent firm, according to the most recent information available.
MicroStrategy’s subsidiary : Macrostrategy
The revelation of the acquisition came shortly after MacroStrategy LLC said that it had obtained a loan in order to amass additional Bitcoin. Silvergate Bank has provided MacroStrategy with a $205 million interest-only term loan in the form of Bitcoin-collateralized financing, which was repaid over a period of three years. And it seems that the corporation is already putting the financing to use for the purpose for which it was intended.
According to estimations by Bitcoin Treasuries, the parent business now has 111 percent of its market capitalization in Bitcoin. Furthermore, with today’s BTC addition, MicroStrategy now has a 0.615 percent stake in the entire supply of Bitcoin. This is an increase over the previous 0.5 percent of a finite 21 million tokens published last week, which was a 0.5 percent increase.
In this regard, it is important to mention that MicroStrategy remains the biggest publicly traded business with this level of BTC exposure. As a result, it comes as no surprise that the price movement of Bitcoin and MSTR is often correlated in a significant and favorable manner.