- A Strategic Bitcoin Acquisition
- MicroStrategy’s Bold Bitcoin Strategy
- MicroStrategy’s Place in the Bitcoin Ecosystem
MicroStrategy, led by Michael Saylor, announced its largest Bitcoin acquisition in over three years.
A Strategic Bitcoin Acquisition
MicroStrategy revealed that it acquired 18,300 BTC between August 6 and September 12, 2024, at an average price of $60,408 per Bitcoin. The purchase was made using proceeds from the sale of company shares. This approach allowed the company to raise substantial capital without relying on traditional debt financing. Additionally, a 10-for-1 stock split was conducted in August 2024 to make its shares more accessible to a broader group of investors and employees. With this latest acquisition, the total Bitcoin investment by MicroStrategy reached approximately $9.45 billion, at an average purchase price of $38,585 per Bitcoin.
MicroStrategy’s Bold Bitcoin Strategy
The company began its journey into Bitcoin in 2020 as part of its capital allocation strategy. Michael Saylor has consistently promoted Bitcoin as a hedge against inflation and a superior store of value compared to traditional fiat currencies. Since then, the company has steadily accumulated Bitcoin, becoming a key player in the cryptocurrency space. This year, the company's shares have more than doubled in value, outperforming Bitcoin, which saw a 40% increase in price. The recent acquisition has further solidified MicroStrategy's leadership in the Bitcoin market, alongside companies like Tesla and a few other crypto-focused firms.
MicroStrategy’s Place in the Bitcoin Ecosystem
With 244,800 BTC in its treasury, MicroStrategy now holds more than 1% of all Bitcoin ever issued. BlackRock’s iShares Bitcoin Trust, with around $20 billion in assets, remains the world’s largest Bitcoin fund. However, MicroStrategy's $14 billion Bitcoin portfolio is now one of the largest holdings among non-fund entities. Besides its substantial Bitcoin holdings, MicroStrategy has developed a metric called BTC yield to track the percentage change in its Bitcoin holdings to its diluted shares over a given period. Saylor announced that the company achieved a 4.4% BTC yield for the quarter and a 17% year-to-date yield.
The largest Bitcoin purchase in over three years has solidified MicroStrategy’s position as one of the leading institutional holders of the cryptocurrency.
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