- MicroStrategy buys $2 billion in Bitcoin, boosting its total Bitcoin holdings to around $23 billion worth of BTC (279,420 BTC)
- The company sold $2 billion worth of its shares to fund the Bitcoin purchase
- MicroStrategy’s return on investment (ROI) for its Bitcoin portfolio has surpassed 100%
MicroStrategy, the business intelligence company turned corporate Bitcoin investor, has once again demonstrated its strong conviction in the leading cryptocurrency by purchasing over $2 billion more in Bitcoin.
Latest Mega Purchase Brings Holdings to $23B
In an announcement on November 11, MicroStrategy revealed that it bought 27,200 Bitcoin for approximately $2.03 billion in cash between October 31 and November 10. The company snapped up the coins at an average price of $74,463 per BTC, including fees and expenses.
With this latest mega purchase, MicroStrategy now holds a total of 127,942 BTC worth nearly $23 billion at current prices.
Funding the Buying Spree By Selling Shares
According to the company, the latest Bitcoin acquisition was funded through proceeds from issuing and selling MicroStrategy shares.
MicroStrategy entered into agreements to sell approximately $78 million worth of its stock to various investors on August 1 and October 30. As of November 10, the company had raised around $2 billion in total from its equity offerings.
The company also reported that its BTC yield, a key metric measuring returns on its Bitcoin purchases, was 73% for the period October 1 through November 10. For 2022 so far, MicroStrategy’s BTC yield stands at 264%.
Bitcoin ROI Now Over 100%
Meanwhile, the MicroStrategy Bitcoin portfolio tracker, Saylor Tracker, showed that the firm’s return on its Bitcoin investments has now surpassed 100%.
Before the latest purchase, the tracker showed MicroStrategy’s BTC holdings were already worth over $20.5 billion – even more than the approximately $19.9 billion the company has spent buying Bitcoin so far.
Strong Conviction Despite Bitcoin’s Volatility
The news demonstrates MicroStrategy’s resolute confidence in Bitcoin, even as the cryptocurrency has experienced significant price swings this year. While many investors hesitate to buy at new highs, MicroStrategy continues to double down – making it one of the largest and most aggressive institutional adopters of Bitcoin.
