- A Strategic Bitcoin Acquisition
- MicroStrategy’s Bold Bitcoin Strategy
- MicroStrategy’s Place in the Bitcoin Ecosystem
MicroStrategy, led by Michael Saylor, has announced its largest Bitcoin acquisition in over three years. The company has bought another 18,300 bitcoins, raising its total holdings to 244,800 BTC as of September 13, 2024.
A Strategic Bitcoin Acquisition
MicroStrategy revealed in a statement that it acquired the new bitcoins between August 6 and September 12, 2024. The purchase was made using proceeds from the sale of company shares, at an average price of $60,408 per bitcoin. This approach has allowed MicroStrategy to raise substantial capital without relying on traditional debt financing. In August 2024, the company conducted a 10-for-1 stock split to make its shares more accessible to a broader group of investors and employees. The recent purchase brings the company's total bitcoin investment to approximately $9.45 billion, at an average purchase price of $38,585 per bitcoin. With the latest acquisition, MicroStrategy’s bitcoin holdings are now valued at around $14 billion at current market prices, which average $58,000 per BTC.
MicroStrategy’s Bold Bitcoin Strategy
MicroStrategy 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. The company’s shares have more than doubled in value this year, outperforming Bitcoin, which has seen a 40% increase in price over the same period. The recent acquisition strengthens MicroStrategy's leadership in the Bitcoin market. Tesla and a few other crypto-focused companies follow a similar strategy, but MicroStrategy stands out among them.
MicroStrategy’s Place in the Bitcoin Ecosystem
With 244,800 bitcoins in its treasury, MicroStrategy now holds more than 1% of all bitcoins 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 acquisition of an additional 18,300 bitcoins strengthens MicroStrategy’s position in the Bitcoin ecosystem and reaffirms their strategic commitment to cryptocurrency as a reliable investment asset.
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