MicroStrategy, the software company turned Bitcoin development enterprise, has amassed a staggering $22.8 billion in Bitcoin holdings after its latest purchase of 27,200 BTC.
Key Highlights of the Purchase
Investment Breakdown:
- Total BTC Holdings: 279,420 BTC
- Latest Purchase: 27,200 BTC for ~$2.03 billion (avg. price: $74,463 per BTC)
- Total Spend: ~$11.9 billion (avg. price: $42,692 per BTC)
- Current ROI: Nearly 100% (based on Bitcoin’s price of $81,636)
👉 Bitcoin’s price surge explained
Strategic Shift to Bitcoin
MicroStrategy’s pivot to Bitcoin began in 2020 under the leadership of then-CEO Michael Saylor, who sought to revitalize the struggling software company during the pandemic. Today, the firm has become synonymous with Bitcoin, offering traditional investors indirect exposure to the asset without engaging with exchanges or ETFs.
Funding the Purchase
The latest acquisition was funded through the company’s at-the-market (ATM) stock offering program, continuing its aggressive strategy of converting cash reserves into Bitcoin.
"MicroStrategy has achieved a BTC Yield of 7.3% QTD and 26.4% YTD."
— Michael Saylor (@saylor)
Bitcoin’s Market Performance
- Current Price: $81,636 (per CoinGecko)
- Weekly Gain: +19%
- All-Time High: $82,379 (reached November 11, 2024)
The rally follows Donald Trump’s election victory, with the President-elect pledging support for the crypto industry. Analysts attribute the surge to regulatory optimism and institutional demand.
FAQs
Why does MicroStrategy keep buying Bitcoin?
MicroStrategy views Bitcoin as a superior store of value and hedge against inflation. Its strategy revolves around accumulating BTC as a primary treasury asset.
How does MicroStrategy fund its Bitcoin purchases?
The company uses a mix of cash reserves, debt financing, and stock sales (ATM offerings) to fund acquisitions.
What’s the average cost of MicroStrategy’s Bitcoin holdings?
~$42,692 per BTC (total spend: $11.9 billion for 279,420 BTC).
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Final Thoughts
MicroStrategy’s unwavering commitment to Bitcoin underscores its confidence in the asset’s long-term value. With holdings nearing $23 billion, the company remains the largest corporate holder of BTC—a trend likely to influence other institutional investors.
Edited by Andrew Hayward
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