Key Takeaways
- Business intelligence firm MicroStrategy has added another 55,000 BTC to its ever-growing Bitcoin stockpile. $5.4 billion worth of the flagship cryptocurrency was bought at an average price of $97,862.
- The latest buy brings the publicly traded company’s total holdings to 386,700 BTC, valued at approximately $36.6 billion. The purchase was made between November 21 and 24 using its $3 billion proceeds from convertible notes and MSTR shares.
- MicroStrategy and its subsidiaries have been accumulating Bitcoin for their reserves since August 2020. At the time, founder Michael Saylor declared the asset “digital gold” and announced his plan to leverage BTC to preserve shareholder value against a depreciating dollar and rising macroeconomic instability.
- This year, MSTR owners received an impressive yield of nearly 60% from its Bitcoin holdings, amounting to a net benefit of 112,125 BTC per year.
U.S-based business intelligence and cloud services firm MicroStrategy has further solidified its position as the world’s largest corporate holder of Bitcoin after purchasing an additional 55,000 BTC for approximately $5.4 billion.
MicroStrategy Acquires 55,000 BTC For Company Reserve At $5.6 Billion
In a November 25 filing with the Securities and Exchange Commission (SEC), the company founded by Bitcoin billionaire Michael Saylor revealed that it purchased the tokens at an average price of $97,862 per BTC. MicroStrategy said it used proceeds from convertible notes and share issuance to fund the acquisition, bringing its total holdings to an astounding 386,700 BTC – valued at approximately $36.65 billion.
The latest Bitcoin stash was bought between November 21 and 24, shortly after the application software company concluded its $3 billion convertible notes offering. As of today, MicroStrategy and its subsidiaries have invested around $21.9 billion in the flagship cryptocurrency, with an average acquisition price of $56,761 per BTC.
MicroStrategy decided to hold Bitcoin as a treasury asset to hedge against inflation in August 2020 and has since consistently accumulated the crypto asset. The company intensified its purchases as Bitcoin rallied to an all-time high a little above $99,000 following Donald Trump’s win in the U.S. Presidential elections on November 5.
The company’s prior weekly Bitcoin purchase included 51,780 BTC, worth nearly $4.9 billion, for an average price of just over $88,500 per token. Its total holdings of 386,700 BTC were purchased at an aggregate value of $21.9 billion for an average price of approximately $56,761 per coin.
MSTR Shareholders Gained A Record $10.5 Billion From MicroStrategy’s BTC Holdings
In addition to increasing its Bitcoin holdings, the company reported an impressive quarter-to-date (QTD) and year-to-date (YTD) yields of 35.2% and 59.3%, respectively, for shareholders. This impressive return further validates its strategy of utilizing Bitcoin as a corporate reserve asset.
The firm’s chairman and former CEO Michael Saylor took to X to highlight that the yields shareholders a net benefit of approximately 112,125 BTC per year, or 341 BTC per day, at the current market rate. He noted that if Bitcoin were to record a price of $100,000 apiece, that would equate to $11.2 billion or $34.1 million per day for 2024
When MicroStrategy first began investing in Bitcoin, Saylor described it as “digital gold” and a hedge against inflation. The chairman’s vision was to leverage Bitcoin to preserve shareholder value amid a depreciating dollar and rising macroeconomic instability.
The company has financed its Bitcoin purchases through various initiatives, including equity sales, convertible note offerings, and corporate cash flow. MicroStategy’s BTC accumulation strategy has drawn widespread attention from institutional investors and crypto enthusiasts.
Meanwhile, its stock has been on a wild run this year, largely driven by Bitcoin’s subsequent rally. MSTR is up more than 515% year-to-date even though its value dropped by 15% last week after Citron Research said they were betting against it.
In an X post, the short seller said that while they remain bullish on Bitcoin and felt the same way about MicroStrategy’s Bitcoin accumulation strategy, MSTR had completely detached from the fundamentals of BTC. However, Wall Street analysts are increasingly optimistic about the stock given Bitcoin’s recent surge and the potential $100,000 valuation it could achieve by the end of the year.
MicroStrategy Ignited Institutional Interest In Bitcoin
MicroStrategy’s bold strategy has inspired other corporations to integrate Bitcoin into their plans. In April, Japanese business consultancy firm Metaplanet adopted the apex cryptocurrency as its treasury reserve asset. Last week, the company announced that it had increased its holdings by purchasing an additional 124 BTC ($11.64 million), bringing the total amount to 1,018.17 BTC, valued at approximately $68.8 million.
On Monday, medical technology company Semler Scientific announced that it acquired an additional 297 BTC ($27.9 million) to bring its total holdings to 1,570 BTC, worth $147.4 million. In September, $9 trillion asset manager BlackRock increased its $1 billion Bitcoin portfolio by purchasing $35 million worth of the crypto asset.
At the time of writing, Bitcoin (BTC) is trading at $93,974 – down 4.27% in the last 24 hours.
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