- A Strategic Bitcoin Acquisition
- MicroStrategy’s Bold Bitcoin Strategy
- MicroStrategy’s Place in the Bitcoin Ecosystem
MicroStrategy, the business intelligence firm led by Michael Saylor, announced its largest Bitcoin acquisition in over three years. On September 13, 2024, the company announced purchasing another 18,300 Bitcoins worth around $1.11 billion, raising its total Bitcoin holdings to 244,800 BTC.
A Strategic Bitcoin Acquisition
MicroStrategy acquired these 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 allowed MicroStrategy to raise substantial capital without relying on traditional debt financing. In August 2024, the company also conducted a 10-for-1 stock split to make its shares more accessible to a broader group of investors and employees. With the recent purchase, the company’s total Bitcoin investment now reaches approximately $9.45 billion at an average purchase price of $38,585 per Bitcoin. The current market value of MicroStrategy's Bitcoin holdings is around $14 billion, with an average BTC price of $58,000.
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. This latest acquisition strengthens MicroStrategy's leadership in the Bitcoin market. Tesla and a few other crypto-focused companies are among the limited number of publicly traded firms following a similar strategy.
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.
MicroStrategy's latest Bitcoin acquisition has strengthened its position among the largest institutional Bitcoin holders and demonstrated its long-term commitment to its cryptocurrency strategy.
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