BTC

MicroStrategy Buys Another $1.11B in Bitcoin, Reaches 244,800 BTC Holdings

by BSCN

September 13, 2024

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The average price for this latest acquisition was $60,408 per Bitcoin, while the overall cost basis for MicroStrategy's total holdings stands at $9.45 billion, or $38,585 per BTC.

MicroStrategy, the business intelligence firm led by Michael Saylor, announced its largest Bitcoin acquisition in over three years. The company announced to purchase another 18,300 Bitcoin, worth around $1.11 billion on Sept. 13, raising its total Bitcoin holdings to 244,800 BTC. 

This makes MicroStrategy as one of the largest institutional holders of Bitcoin worldwide.

A Strategic Bitcoin Acquisition

MicroStrategy revealed in a statement that it acquired these new bitcoins between August 6 and September 12, 2024. The purchase was made using proceeds from the sale of company shares, at an average price of $60,408 per Bitcoin. 

 

This approach has allowed MicroStrategy to raise substantial capital without relying on traditional debt financing. The company also conducted a 10-for-1 stock split in August 2024 to make its shares more accessible to a broader group of investors and employees.

 

The recent purchase brings the company’s total Bitcoin investment to approximately $9.45 billion, at an average purchase price of $38,585 per Bitcoin.

 

With this latest acquisition, MicroStrategy’s Bitcoin holdings are now valued at around $14 billion at current market prices, which average $58,000 per BTC.

MicroStrategy’s Bold Bitcoin Strategy

MicroStrategy began its journey into Bitcoin in 2020 as part of its capital allocation strategy. Michael Saylor has consistently promoted Bitcoin as a hedge against inflation and a superior store of value compared to traditional fiat currencies. Since then, the company has steadily accumulated Bitcoin, becoming a key player in the cryptocurrency space.

 

The company’s shares have more than doubled in value this year, outperforming Bitcoin, which has seen a 40% increase in price over the same period. 

 

The recent acquisition strengthens MicroStrategy's leadership in the Bitcoin market. Tesla, another major firm holding Bitcoin, and a few crypto-focused companies, are among the limited number of publicly traded firms following a similar strategy.

MicroStrategy’s Place in the Bitcoin Ecosystem

With 244,800 Bitcoin in its treasury, MicroStrategy now holds more than 1% of all Bitcoin ever issued. 

 

BlackRock’s iShares Bitcoin Trust, with around $20 billion in assets, remains the world’s largest Bitcoin fund. However, MicroStrategy's $14 billion Bitcoin portfolio is now one of the largest holdings among non-fund entities.

 

Besides its substantial Bitcoin holdings, MicroStrategy has developed a metric called BTC yield to track the percentage change in its Bitcoin holdings to its diluted shares over a given period. Saylor announced that the company achieved a 4.4% BTC yield for the quarter and a 17% year-to-date yield. 

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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