Bitcoin Soars: MicroStrategy and El Salvador Attain Success

Major Bitcoin holder American software company MicroStrategy has purchased an additional 12,000 Bitcoin for $821.7 million. This brings their total holdings to around 205,000 BTC acquired which are equivalent to over $14 billion at an average price of $33,706 per coin. An X post by Lookonchain on February 26 highlighted MicroStrategy’s earlier acquisition of 3,000 BTC amounting to $155 million at $51,813 per Bitcoin.

MicroStrategy bought another 12K $BTC($821.72M) at $68,477 from Feb 26 to Mar 10!#MicroStrategy currently holds 205K $BTC($9.9B), and the average buying price is $33,706.

At current prices, the profit is ~$7.9B!https://t.co/Wa2y09pv6F pic.twitter.com/12ZjBsZOvn
— Lookonchain (@lookonchain) March 12, 2024

The fresh Bitcoin acquisition between February 26 and March 10 comes as MicroStrategy completes its latest private offering of convertible notes. The notes carrying an interest rate of 0.625% per annum are convertible to cash MicroStrategy stocks or a combination of the two. MicroStrategy completed an $800 million convertible note offering utilizing the proceeds to acquire the abovementioned BTC at an average price of $68,477 per BTC.

MicroStrategy founder and chairman Michael Saylor confirmed this latest development on social media as he shed light on the company’s commitment to fortify its Bitcoin treasury reserve. Prior to this significant purchase MicroStrategy held approximately 193,000 BTC showcasing a balance of $12.9 billion and a remarkable return of 112% since its initiation into Bitcoin acquisitions.

MicroStrategy’s latest purchase comes amid a period of strong Bitcoin price performance. Bitcoin has surged 675% since MicroStrategy CEO Michael Saylor began buying the cryptocurrency in 2020.

+ #BTC revenue from our passport program
+ Revenue from converting #BTC to USD for local businesses
+ #BTC from mining
+ #BTC revenue from government services https://t.co/O1sjKoJRiq
— Nayib Bukele (@nayibbukele) March 11, 2024

Meanwhile on a global scale, El Salvador’s Bitcoin treasury is sitting on a remarkable $84 million in unrealized profit. President Nayib Bukele revealed that the nation which has been recognizing Bitcoin as legal tender since the historic “Bitcoin Law” in 2021 has witnessed a 250% rise in Bitcoin’s value over the past year. El Salvador currently holds 2,681 BTC which are acquired through 12 separate purchases at an average cost of $42,600.

President Bukele has also indicated that El Salvador is earning additional Bitcoin revenue through various government services. This includes a citizenship passport program, Bitcoin to USD conversion for local businesses and Bitcoin mining. The Freedom VISA introduced in December further amplifies El Salvador’s Bitcoin strategy offering residency to those investing at least $1 million worth of Bitcoin or stablecoins.