MicroStrategy Acquires 18.3K Bitcoins for $1.1B
MicroStrategy, once a business software firm, has now rebranded itself as a bitcoin development company. The company has recently increased its bitcoin holdings by acquiring 18,300 bitcoins (BTC), bringing its total holdings to 244,800 BTC. The new bitcoins were purchased at an average price of $60,408 per token, significantly boosting MicroStrategy’s holdings. The company’s cost basis for these holdings stands at $9.45 billion, with an average price of $38,585 per bitcoin. At the current market price of just under $58,000, MicroStrategy’s bitcoin stack is now valued at approximately $14 billion.
According to Executive Chairman Michael Saylor, the company has achieved a BTC yield of 4.4% in the current quarter and 17% year-to-date on its bitcoin holdings. BTC yield is a metric developed by MicroStrategy to describe the percentage change over a specified period in the ratio between the company’s bitcoin holdings and its assumed diluted shares outstanding.
MicroStrategy began acquiring bitcoin in 2020 and has continued to add to its holdings over time. Data from BitcoinTreasuries indicates that MicroStrategy is the largest publicly-listed holder of bitcoin globally. Despite this significant investment in bitcoin, MicroStrategy’s shares remained flat in premarket trading but have seen a notable 91% increase year-to-date.
In conclusion, MicroStrategy’s strategic shift towards becoming a bitcoin development company has proven to be a lucrative move, with substantial growth in its bitcoin holdings and a notable increase in the overall value of its assets. The company’s focus on bitcoin as a key asset class has positioned it as a major player in the cryptocurrency space, highlighting the increasing adoption and integration of digital assets within traditional corporate structures.
