MicroStrategy has significantly expanded its Bitcoin holdings with the recent purchase of approximately 27,200 Bitcoin, totaling around $2.03 billion. Conducted between October 31 and November 10, 2024, the purchase was made at an average price of $74,463 per Bitcoin, according to statements released by the company. This acquisition raises MicroStrategy’s total Bitcoin reserve to roughly 279,420 BTC, now worth approximately $22.8 billion. To date, the company has invested $11.9 billion in Bitcoin, with an average purchase price of $42,692 per coin, positioning MicroStrategy as the largest corporate holder of Bitcoin.

MicroStrategy’s acquisition was financed through its ongoing share issuance program, aligning with the company’s broader strategy to aggressively convert cash into Bitcoin. Michael Saylor, the company’s founder and executive chairman, originally initiated this strategy in 2020 to bolster the company’s assets during the pandemic. Since then, Saylor has promoted Bitcoin as a key tool for wealth preservation, referring to it as “digital gold.” As part of this approach, the company has also utilized debt instruments to fund Bitcoin acquisitions.

This latest purchase reflects both Saylor's ongoing commitment to Bitcoin and the company’s goal to continue its accumulation, with plans to raise an additional $42 billion in capital over the next few years. The timing of MicroStrategy’s purchase coincides with a bullish period in Bitcoin’s market performance. Following recent events, including Donald Trump’s presidential election victory and subsequent pro-crypto stance, Bitcoin’s value has surged, hitting record highs of over $82,000.

As of November 10, 2024, Bitcoin’s price has climbed by 19% over the past week, with analysts citing MicroStrategy’s investment as a contributing factor to its price growth. Financial firm JPMorgan recently predicted that MicroStrategy’s ongoing investments, alongside favorable political developments, could further bolster Bitcoin’s standing in the market.

This purchase underscores MicroStrategy’s role as a central player in Bitcoin’s institutional adoption. Saylor’s strategy of accumulating large Bitcoin reserves has transformed the company into an indirect Bitcoin investment vehicle, appealing to traditional investors seeking Bitcoin exposure without engaging directly in exchanges. This development may influence other corporate entities to adopt similar strategies as they observe the impact of MicroStrategy’s Bitcoin investments.

The Block Article