MicroStrategy Adds 1,895 Bitcoin to its Reserves using Stock Sale Returns, Semler Scientific Ups its Holdings to 3,634 BTC: A Glimpse at Rising Corporate Bitcoin Adoption

Bitcoin Corporate Adoption Gaining Pace with Strategy and Semler Scientific Increasing Their Investments

In the expansive world of cryptocurrency, Bitcoin has emerged as the leader, drawing significant investment from across industries. Two such entities leading the way in corporate Bitcoin investment are Strategy, previously known as MicroStrategy, and Semler Scientific.

Strategy’s recent acquisition of 1,895 Bitcoin is a testament to the increasing belief in the potential of cryptocurrency. Despite the market’s volatility, the company spent a considerable sum of $180.3 million to enhance its Bitcoin holdings. The considerable investment occurred between April 28 and May 4, as reported by a document filed with the US Securities and Exchange Commission (SEC).

Investment Details and Future Plans

The average cost of each Bitcoin acquired by Strategy was a staggering $95,167. The acquisition was funded by selling off pieces of the company’s own common and preferred stocks, marking a significant commitment to their Bitcoin investment venture. Specifically, they sold 353,825 shares of MSTR common stock and 575,392 shares of STRK preferred stock.

The money collected from the equity sale is a part of Strategy’s ongoing endeavours to raise capital for boosting its Bitcoin reserves, which saw them exhaust their MSTR portion of their 21/21 Plan. This initiative was designed to raise $42 billion for buying Bitcoins, leaving only the STRK component, which presently has the capacity of $20.87 billion.

Strategy’s New 42/42 Plan for Additional Capital

In a response to the exhausting funds, Strategy has laid out plans for a new 42/42 Plan. This fresh plan aims to accumulate another $42 billion in the next two years by balancing equity and debt offerings, providing much-needed funds for the purchasing of additional Bitcoins. More importantly, to ensure continued investment, the company plans to keep issuing STRK and STRF perpetual preferred shares.

With this recent transaction, Strategy now boasts a total holding of 555,450 BTC, acquired at a total cost of $38.08 billion. As current Bitcoin prices hover around $94,000, the total value of Strategy’s Bitcoin holdings sits at an astounding $52 billion. This has resulted in an unrealized gain of nearly $14.2 billion, accounting for over 2.6% of the total circulating supply of Bitcoin.

Semler Scientific Joins the Bitcoin Wagon

Strategy is not the only company recognizing the worth of Bitcoin. Semler Scientific has also broadened its Bitcoin treasury position, showcasing the growing trend among corporations to invest in cryptocurrency. Recently, Semler disclosed its purchase of 167 Bitcoins, amounting to an investment of $16.2 million.

Impressive Year-to-date Yield

Semler’s total Bitcoin acquisition now stands at 3,634 BTC and has already generated a 22.2% year-to-date yield on its Bitcoin holdings. This impressive performance position makes Semler the fourth-largest public Bitcoin treasury in the US, a testament to its commitment and belief in the potential of cryptocurrency.

In conclusion, the growing popularity of Bitcoin as a reliable investment option is clear, with companies like Strategy and Semler leading the way. Their significant investments in Bitcoin not only highlight the potential of cryptocurrency but also point towards a future where digital currencies could become a core part of corporate financial strategies.