MicroStrategy Bought Another $5.4 Billion in Bitcoin
MicroStrategy bought another 55,500 Bitcoins for $5.4 billion
MicroStrategy bought another 55,500 Bitcoins for $5.4 billion. The company, following Michael Saylor's strategy, bought another 55,500 Bitcoins.
MicroStrategy purchased an additional 55,500 bitcoins for $5.4 billion between 18 and 24 November, according to Michael Saylor, the company's founder and president. The average purchase price for bitcoins in this batch was $97,862 per bitcoin.
The purchase represents the largest in terms of dollar value. Last week, MicroStrategy spent $800 million more than the week before, when the company reported buying 51,780 Bitcoins worth about $4.6 billion, at an average price of $88,627 per coin.
MicroStrategy, an analytical software developer, is the largest corporate holder of Bitcoin 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 represents the best deflationary asset.
As of 24 November 2024, MicroStrategy and its subsidiaries own 386,700 BTC with an average purchase price of $56,761 per Bitcoin, for a total spent of $21.9 billion. At Bitcoin's current exchange rate of $98,000, the value of 386,700 BTC as of 25 November is about $37.8 billion.
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTRhttps://t.co/79ExzXk4UM
Saylor added that MicroStrategy's Bitcoin holdings have returned 59.3% since the beginning of the year, providing shareholders with net income of approximately 112,125 BTC, or about 341 BTC per day. At a price of $100,000 per Bitcoin, that would equate to $11.2 billion per year or $34.1 million per day, the company's founder wrote.
MicroStrategy's strategy involves buying Bitcoin with borrowed money: the company periodically issues debt securities with maturities of several years. The funds for the purchase of a new batch of Bitcoins were obtained by issuing convertible bonds and selling MSTR shares.
According to TradingView, MSTR's share price at 17:40 is around $411 and has risen 509% since the beginning of the year. According to calculations by Bernstein analysts, MicroStrategy will own 4% (830,000 BTC) of the entire Bitcoin supply by the end of 2033, and its share price will rise to $600 by the end of 2025.
Follow Saylor's Vision
Michael Saylor, the company's executive chairman and a fervent supporter of Bitcoin, has consistently promoted cryptocurrency as a store of value and hedge against inflation. His strategy has positioned MicroStrategy as a pioneer in Bitcoin's corporate adoption, in line with the broader trend of digital assets gaining acceptance in mainstream finance.
Implications for the Market
This substantial purchase highlights the continued confidence in Bitcoin's long-term value, even amid market volatility. It underscores the growing interest and adoption by institutions, which could influence other companies to consider similar moves.
MicroStrategy's bold strategy is a testament to its commitment to Bitcoin as a central part of its corporate treasury strategy. As the cryptocurrency market evolves, the company's significant investment could serve as a case study for others evaluating the potential of digital assets.
Experts base their predictions on the fact that the market situation is favourable for cryptocurrencies. MicroStrategy's strategy of investing in Bitcoin through long-term loans does not expose the company to the risk of insolvency; moreover, MicroStrategy is significantly ahead of its plans to raise capital.
The second-largest cryptocurrency by market capitalisation has been falling relative to Bitcoin's price for more than two years.
Why has Ethereum been weaker than its competitors?
The price of the main cryptocurrency has been rising almost without significant correction since Donald Trump's victory in the US presidential election.
MicroStrategy bought another 55,500 Bitcoins for $5.4 billion. The company, following Michael Saylor's strategy, bought another 55,500 Bitcoins.
MicroStrategy purchased an additional 55,500 bitcoins for $5.4 billion between 18 and 24 November, according to Michael Saylor, the company's founder and president. The average purchase price for bitcoins in this batch was $97,862 per bitcoin.
The purchase represents the largest in terms of dollar value. Last week, MicroStrategy spent $800 million more than the week before, when the company reported buying 51,780 Bitcoins worth about $4.6 billion, at an average price of $88,627 per coin.
MicroStrategy, an analytical software developer, is the largest corporate holder of Bitcoin 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 represents the best deflationary asset.
As of 24 November 2024, MicroStrategy and its subsidiaries own 386,700 BTC with an average purchase price of $56,761 per Bitcoin, for a total spent of $21.9 billion. At Bitcoin's current exchange rate of $98,000, the value of 386,700 BTC as of 25 November is about $37.8 billion.
Saylor on X
Saylor added that MicroStrategy's Bitcoin holdings have returned 59.3% since the beginning of the year, providing shareholders with net income of approximately 112,125 BTC, or about 341 BTC per day. At a price of $100,000 per Bitcoin, that would equate to $11.2 billion per year or $34.1 million per day, the company's founder wrote.
MicroStrategy's strategy involves buying Bitcoin with borrowed money: the company periodically issues debt securities with maturities of several years. The funds for the purchase of a new batch of Bitcoins were obtained by issuing convertible bonds and selling MSTR shares.
According to TradingView, MSTR's share price at 17:40 is around $411 and has risen 509% since the beginning of the year. According to calculations by Bernstein analysts, MicroStrategy will own 4% (830,000 BTC) of the entire Bitcoin supply by the end of 2033, and its share price will rise to $600 by the end of 2025.
Follow Saylor's Vision
Michael Saylor, the company's executive chairman and a fervent supporter of Bitcoin, has consistently promoted cryptocurrency as a store of value and hedge against inflation. His strategy has positioned MicroStrategy as a pioneer in Bitcoin's corporate adoption, in line with the broader trend of digital assets gaining acceptance in mainstream finance.
Implications for the Market
This substantial purchase highlights the continued confidence in Bitcoin's long-term value, even amid market volatility. It underscores the growing interest and adoption by institutions, which could influence other companies to consider similar moves.
MicroStrategy's bold strategy is a testament to its commitment to Bitcoin as a central part of its corporate treasury strategy. As the cryptocurrency market evolves, the company's significant investment could serve as a case study for others evaluating the potential of digital assets.
Experts base their predictions on the fact that the market situation is favourable for cryptocurrencies. MicroStrategy's strategy of investing in Bitcoin through long-term loans does not expose the company to the risk of insolvency; moreover, MicroStrategy is significantly ahead of its plans to raise capital.
Read Next
Bitcoin Price Returns to 98 Thousand Dollars
Bitcoin's price has recovered after falling below $96,000.
The Price of ETH is at its Lowest Compared to BTC
The second-largest cryptocurrency by market capitalisation has been falling relative to Bitcoin's price for more than two years. Why has Ethereum been weaker than its competitors?
Bitcoin Exceeded $99.000 for the First Time. There is Extreme Greed in the Cryptocurrency Market
The price of the main cryptocurrency has been rising almost without significant correction since Donald Trump's victory in the US presidential election.
BlackRock Chose Bitcoin Over Traditional Assets. What is the Reason?
BlackRock provided reasons for the rise of Bitcoin, calling it an attractive asset.