Home News Capital International purchased $600M in MicroStrategy stock

Capital International purchased $600M in MicroStrategy stock


Capital International’s multipurpose asset management complex has acquired a large $ 600 million stake in MicroStrategy. After that, its shares rose in price by 2.3%. The company currently owns 953,242 shares, or 12.2% of MicroStrategy Class A shares, making Capital International the second largest shareholder.

According to the latest filings from 13F Capital International, the company didn’t own any shares of MicroStrategy as of March 31. However, it now owns 953,242 shares.

Following this announcement, MicroStrategy shares hit $ 635.

It is worth noting that the company, which first announced the purchase of Bitcoin for over $ 250 million last year, acquired 105,085 BTC at the time of publication, which is more than $ 3.5 billion.

Largest institutional holder of the first cryptocurrency

MicroStrategy started buying cryptocurrency in August last year. And has been trying to buy cryptocurrency every time the opportunity presents itself ever since. According to analytical data, in May MicroStrategy owned 0.438% of the total volume of Bitcoins in circulation. So, undoubtedly it’s currently the largest institutional holder of the first cryptocurrency.

Right after the first purchase, Michael Saylor, the head of the company, explained the rationale behind investing in Bitcoin:

“This investment reflects our conviction that Bitcoin, as the world’s most widely used cryptocurrency, is a reliable store of value and an attractive investment asset with longer-term upside potential than holding cash”.

MicroStrategy uses Bitcoin for more than just an investment asset. In mid-April, it became known that the company’s board of directors would receive bonus payments in Bitcoins instead of regular money. MicroStrategy notified the US Securities and Exchange Commission about this.

Current position of MicroStrategy stock and impact of the Capital International acquisition

As a reminder, last month MicroStrategy announced its intention to raise a total of $ 400 million in bonds for a private placement to buy Bitcoin. The company later increased the amount to $ 500 million. As planned, the funds were spent on the purchase of Bitcoin. After that, the company’s share price for a short time fell by more than 2%. The purchase of a large block of shares by the Capital International asset management complex could improve the current situation.

Despite news of a massive investment in a company with huge cryptocurrency holdings, the price of BTC doesn’t seem to be affected. According to the analytical platform CoinGecko, over the past 24 hours, the flagship asset has grown in price by 3.4%. It now costs about $ 33,750 with a market capitalization of $ 635,686,404,495.

It’s worth noting that MicroStrategy CEO Michael Saylor recently published an article about a project. In which Microsoft is using Bitcoin to help people protect their digital identity. In this project, Microsoft is participating in the ION project that wants to create decentralized identifiers (DIDs). Identifiers will serve as ports for all human activities on the Internet. According to a Microsoft whitepaper, the company believes that people should use a secure cloud storage space and not share their digital data with too many applications.

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