MicroStrategy has purchased 18,300 Bitcoin for $1.11 billion, raising its total holdings to 244,800 BTC.
MicroStrategy, the business intelligence firm led by co-founder Michael Saylor, has purchased an additional 18,300 Bitcoin for approximately $1.11 billion. This acquisition increases the company's total Bitcoin holdings to 244,800 BTC, acquired at a cumulative cost of $9.45 billion.
MicroStrategy acquires 18,300 #Bitcoin for $1.11 billion, bringing its total holdings to 244,800 BTC at an average price of $38,585. pic.twitter.com/5BpKmqguZt
— TFTC (@TFTC21) September 13, 2024
The latest purchase, which occurred between August 6 and September 12, 2024, is MicroStrategy's largest Bitcoin buy since 2021. The average price per Bitcoin for this transaction was $60,408, according to the company's filings with the U.S. Securities and Exchange Commission (SEC). Despite challenging market conditions in 2024, MicroStrategy continues to pursue its Bitcoin accumulation strategy, which began in 2020 as a hedge against inflation.
In a statement, Michael Saylor emphasized that the company has achieved a 17% Bitcoin yield year-to-date, reflecting the cryptocurrency's appreciation. Saylor has long advocated for Bitcoin as a superior treasury asset compared to cash, which he argues is vulnerable to inflationary devaluation. MicroStrategy's strategy has garnered significant attention within the corporate and Bitcoin communities, with other companies following its lead in adopting Bitcoin treasury policies.
According to Bloomberg, MicroStrategy's Bitcoin holdings are valued at around $14 billion, representing approximately 1% of all Bitcoin in circulation. The company's aggressive accumulation has positioned it as the largest corporate holder of Bitcoin globally. Saylor, a prominent Bitcoin supporter, has framed these purchases as part of a larger effort to safeguard shareholder value by capitalizing on Bitcoin's long-term growth potential.
The purchase was financed through proceeds from the issuance and sale of MicroStrategy's common shares, a tactic the company has employed in the past to fund its Bitcoin acquisitions. Earlier this year, MicroStrategy conducted a 10-for-1 stock split, making shares more accessible to investors and employees. The company’s stock price has surged over 100% in 2024, outpacing Bitcoin's approximate 40% price increase during the same period.
While MicroStrategy remains a Bitcoin trailblazer, few U.S. public companies have followed its approach, with Tesla and a handful of Bitcoin-related firms being notable exceptions. Nonetheless, MicroStrategy's latest acquisition reaffirms its commitment to Bitcoin.
