MicroStrategy Sets New Record with $37 Billion Bitcoin Purchase
MicroStrategy, known for its bold moves in the cryptocurrency market, has once again made waves with its recent record-breaking Bitcoin purchase. The company acquired an impressive 55,500 BTC between Nov. 18 and 24, totaling $5.4 billion. This substantial investment, revealed in a filing with the U.S. Securities and Exchange Commission (SEC), was made at an average price of around $97,862 per Bitcoin. As a result, MicroStrategy’s total Bitcoin holdings now stand at a whopping 386,700 BTC, valued at approximately $37.6 billion.
This latest purchase is part of MicroStrategy’s ongoing Bitcoin investment strategy, which has seen the company accumulate a cumulative total of $21.9 billion in Bitcoin. With an average acquisition cost of $56,761 per Bitcoin, the firm’s recent activity showcases its commitment to expanding its crypto portfolio. To finance this latest acquisition, MicroStrategy raised $3 billion through a debt offering, complemented by $2.46 billion generated from the sale of 5.6 million shares.
CEO Michael Saylor has been vocal about the company’s Bitcoin strategy, emphasizing its impressive year-to-date yield of 59.3%. This unique metric tracks the increase in Bitcoin holdings against share dilution, highlighting MicroStrategy’s success in this volatile market. Despite these achievements, the company’s stock has experienced some turbulence. While shares initially surged by 4% during pre-market trading on Nov. 25, they closed the day down 1% at $418, reflecting the fluctuating nature of both Bitcoin and traditional markets.
MicroStrategy’s ambitious plans for further Bitcoin acquisitions have not gone unnoticed, with some investors expressing skepticism about the company’s valuation. Notably, Citron Research recently announced a short position against MicroStrategy, citing concerns about its premium valuation relative to its Bitcoin holdings. To fund future crypto purchases, MicroStrategy aims to raise $42 billion over the next three years through various financial instruments, affirming its commitment to expanding its stake in the cryptocurrency market.
Analysts at Bernstein have speculated that by 2033, MicroStrategy could own 4% of Bitcoin’s total supply, amounting to an impressive 830,000 BTC valued at $830 billion, assuming Bitcoin reaches $1 million per coin. This month alone, MicroStrategy added 134,480 Bitcoin, valued at $13 billion—a milestone that previously took the company three years to achieve. Furthermore, other companies are following MicroStrategy’s lead, with Semler Scientific recently announcing the acquisition of 297 Bitcoin, bringing its total holdings to 1,570 BTC.
As Bitcoin continues to rally in price, MicroStrategy’s position as the largest corporate Bitcoin holder solidifies. The company’s unwavering confidence in Bitcoin as a key asset for the long term is evident in its strategic investments and ambitious plans for future growth in the cryptocurrency market.
