In a bold move that underscores its commitment to Bitcoin, MicroStrategy has announced the acquisition of an additional 55,500 BTC for approximately $5.4 billion, at an average price of $97,862 per bitcoin. This acquisition, which took place between November 18 and November 24, marks the company’s largest purchase to date and is part of a broader strategy to bolster its cryptocurrency holdings.
The announcement comes on the heels of a successful $3 billion debt offering completed on November 21, which yielded net proceeds of $2.97 billion. Additionally, MicroStrategy sold 5,597,849 shares for approximately $2.46 billion during the same period. As of November 24, the company reported that it has approximately $12.8 billion worth of shares still available for sale as part of its planned $21 billion equity offering, alongside $21 billion in fixed-income securities. This ambitious capital raise aims to total $42 billion over the next three years, primarily for further Bitcoin acquisitions.
With this latest purchase, MicroStrategy’s total Bitcoin holdings have reached an impressive 386,700 BTC, valued at over $37 billion. The average purchase price for the company’s total Bitcoin holdings stands at $56,761 per bitcoin, amounting to a total investment of around $21.9 billion, including fees and expenses. This strategic accumulation is led by co-founder and executive chairman Michael Saylor, who has been a vocal advocate for Bitcoin as a primary treasury reserve asset.
MicroStrategy’s recent acquisitions are part of a consistent trend; this latest announcement follows the company’s purchase of approximately 51,780 BTC for roughly $4.6 billion at an average price of $88,627 per coin just a week prior, and a $2 billion Bitcoin acquisition the week before that. This pattern highlights MicroStrategy’s aggressive approach to expanding its Bitcoin portfolio.
A key performance indicator that MicroStrategy employs is its “Bitcoin Yield,” which measures the percentage change in its Bitcoin holdings relative to its diluted shares. As of November 24, the firm reported a year-to-date Bitcoin Yield of 59.3%, indicating significant growth in its holdings while effectively managing share dilution. The quarterly Bitcoin Yield stands at 35.2%, reflecting the company’s ongoing success in leveraging its Bitcoin investments to benefit shareholders.
Looking ahead, analysts at research and brokerage firm Bernstein have projected that MicroStrategy could acquire up to 4% of Bitcoin’s circulating supply over the next decade. If this ambitious goal is realized, MicroStrategy could hold approximately 830,000 BTC, valued at an astounding $830 billion at a hypothetical price of $1 million per bitcoin by the end of 2033.
In summary, MicroStrategy’s latest acquisition of 55,500 BTC not only reinforces its position as a leading corporate holder of Bitcoin but also showcases its strategic vision for the future. With a robust capital raise plan and impressive Bitcoin Yield metrics, the company is poised to continue its aggressive accumulation of the cryptocurrency, further solidifying its role in the evolving landscape of digital assets.
MicroStrategy, CC BY 2.0, via Wikimedia Commons
