MicroStrategy Acquired Bitcoin Worth $4.6 Billion, How Many Coins Does It Hold?
The new batch of bitcoins became the largest ever purchase by Michael Saylor's company.
The new batch of bitcoins became the largest purchase ever by Michael Saylor's company.
MicroStrategy has bought another 51,780 bitcoins. The company, founded by billionaire and cryptocurrency enthusiast Michael Saylor, said it purchased bitcoins worth about $4.6 billion between 11 and 17 November, at an average price of $88,627 per bitcoin. This is the largest purchase made by the company.
Previously, MicroStrategy had sold 13.6 million shares to raise capital, and it was these funds that were used to purchase bitcoin, both for the new batch and the previous batch, whose acquisition the company disclosed on 11 November.
In total, MicroStrategy and its subsidiaries now own 331,200 BTC, purchased at an average price of $49,874 per coin. In total, the company has spent $16.5 billion to acquire them. At the current exchange rate of $90,000, these holdings are valued at $29.8 billion.
MicroStrategy, a developer of data analysis software, is the largest corporate holder of bitcoins in the world. The company was one of the first to adopt a BTC accumulation strategy four years ago, based on the belief that the premier cryptocurrency is the best deflationary asset.
MicroStrategy plans to become a bitcoin bank and create a $1 trillion company, Saylor said recently. According to its plan, MicroStrategy plans to accumulate bitcoins worth between $100 billion and $150 billion.
MicroStrategy's shares on 18 November rose 12 per cent in the first 30 minutes after the US stock market opened. This year, the company's stock is at its highest in 24 years, with its value increasing 391% since the start of the year.
This high performance is due to the fact that MicroStrategy has acted as a point of reference for investors who wanted to access bitcoin, without directly tackling the risky asset, according to experts. This could now change: the realisation of positive expectations about cryptocurrency regulation in the US could create an environment in which investors will choose to buy real bitcoin rather than indirect forms of investment, according to experts.
Bitcoin's exchange rate at 5:55pm hovered around $90,300. On the morning of 18 November it reached $92,000, but failed to continue rising and fell.
The Strategy Behind the Buying
MicroStrategy uses innovative financing mechanisms to fund its bitcoin purchases. Recent purchases have been supported by the sale of shares and the issuance of convertible debt, which provides access to low or zero interest capital. The company's convertible bonds allow investors the flexibility to convert to equity or receive redemption at maturity.
Why is This Important
MicroStrategy's shares have beaten the market, growing more than 500% since the start of the year in 2024, demonstrating the profitability of its bet on Bitcoin. This aggressive strategy has positioned the company to benefit from the growth in the price of Bitcoin, although it carries risks related to market volatility. This purchase consolidates MicroStrategy's position as a pioneer in corporate cryptocurrency investments.
With nearly $4.6 billion in options contracts on Bitcoin (BTC) and Ethereum (ETH) expiring, the cryptocurrency market is bracing for increased volatility.
The new batch of bitcoins became the largest purchase ever by Michael Saylor's company.
MicroStrategy has bought another 51,780 bitcoins. The company, founded by billionaire and cryptocurrency enthusiast Michael Saylor, said it purchased bitcoins worth about $4.6 billion between 11 and 17 November, at an average price of $88,627 per bitcoin. This is the largest purchase made by the company.
Previously, MicroStrategy had sold 13.6 million shares to raise capital, and it was these funds that were used to purchase bitcoin, both for the new batch and the previous batch, whose acquisition the company disclosed on 11 November.
In total, MicroStrategy and its subsidiaries now own 331,200 BTC, purchased at an average price of $49,874 per coin. In total, the company has spent $16.5 billion to acquire them. At the current exchange rate of $90,000, these holdings are valued at $29.8 billion.
MicroStrategy, a developer of data analysis software, is the largest corporate holder of bitcoins in the world. The company was one of the first to adopt a BTC accumulation strategy four years ago, based on the belief that the premier cryptocurrency is the best deflationary asset.
MicroStrategy plans to become a bitcoin bank and create a $1 trillion company, Saylor said recently. According to its plan, MicroStrategy plans to accumulate bitcoins worth between $100 billion and $150 billion.
MicroStrategy's shares on 18 November rose 12 per cent in the first 30 minutes after the US stock market opened. This year, the company's stock is at its highest in 24 years, with its value increasing 391% since the start of the year.
This high performance is due to the fact that MicroStrategy has acted as a point of reference for investors who wanted to access bitcoin, without directly tackling the risky asset, according to experts. This could now change: the realisation of positive expectations about cryptocurrency regulation in the US could create an environment in which investors will choose to buy real bitcoin rather than indirect forms of investment, according to experts.
Bitcoin's exchange rate at 5:55pm hovered around $90,300. On the morning of 18 November it reached $92,000, but failed to continue rising and fell.
The Strategy Behind the Buying
MicroStrategy uses innovative financing mechanisms to fund its bitcoin purchases. Recent purchases have been supported by the sale of shares and the issuance of convertible debt, which provides access to low or zero interest capital. The company's convertible bonds allow investors the flexibility to convert to equity or receive redemption at maturity.
Why is This Important
MicroStrategy's shares have beaten the market, growing more than 500% since the start of the year in 2024, demonstrating the profitability of its bet on Bitcoin. This aggressive strategy has positioned the company to benefit from the growth in the price of Bitcoin, although it carries risks related to market volatility. This purchase consolidates MicroStrategy's position as a pioneer in corporate cryptocurrency investments.
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