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.