MicroStrategy Bitcoin Purchase Sets New Record, Increases Holdings to $37 Billion
MicroStrategy has hit the news with its most substantial Bitcoin acquisition to date. Between November 18 and 24, the company bought 55,500 BTC for $5.4 billion, bringing their total holdings to a whopping 386,700 BTC valued at over $37 billion.
This recent purchase was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) and was done at an average price of $97,862 per Bitcoin. MicroStrategy’s total Bitcoin investment now stands at $21.9 billion, with an average acquisition cost of $56,761 per Bitcoin.
To fund this latest acquisition, MicroStrategy utilized a $3 billion debt offering, raising $2.97 billion, in addition to $2.46 billion raised from selling 5.6 million shares. This move is part of the company’s intensified investment strategy in Bitcoin. Just earlier this month, they acquired 51,780 BTC for $4.6 billion, following a $2 billion purchase only weeks before. These aggressive buys align with Bitcoin’s surge in value, edging closer to the $100,000 mark.
Michael Saylor, MicroStrategy’s executive chairman, has been vocal about the company’s growing stake in Bitcoin. Via social media, he highlighted a year-to-date Bitcoin yield of 59.3%, tracking the increase in Bitcoin holdings against share dilution.
While MicroStrategy’s stock has seen some volatility, with shares climbing 4% during pre-market trading on November 25 but closing down 1% at $418, it has risen a remarkable 500% year-to-date, largely due to Bitcoin’s impressive rally.
Despite the company’s strong Bitcoin strategy, there have been skeptics. Citron Research recently took a short position against MicroStrategy, expressing concerns about its valuation. The stock currently trades at a 2.5x premium relative to its Bitcoin holdings, a figure some analysts believe may not be sustainable.
Looking ahead, MicroStrategy has ambitious plans to raise $42 billion over the next three years through equity and fixed-income securities to fund more Bitcoin acquisitions. Analysts at Bernstein estimate that by 2033, the company could own 4% of Bitcoin’s total supply, accumulating 830,000 BTC valued at $830 billion if Bitcoin reaches $1 million per coin.
MicroStrategy’s recent purchase of 134,480 Bitcoin, valued at $13 billion in just one month, outpaced what it previously acquired in three years. Other companies are taking note and following suit; Semler Scientific recently announced the purchase of 297 Bitcoin, bringing their total holdings to 1,570 BTC.
As Bitcoin’s value continues to rise, MicroStrategy’s position as the largest corporate Bitcoin holder is becoming more solidified. The company’s bold strategy underscores its confidence in Bitcoin as a long-term key asset.
