- MicroStrategy purchased around $2 billion worth of Bitcoin (approximately 27,200 BTC) between October 31 and November 10, 2024.
- This is MicroStrategy’s largest Bitcoin purchase since December 2020, when the company bought 29,646 BTC.
- With this latest purchase, MicroStrategy now holds around 279,420 BTC, valued at approximately $24 billion based on Bitcoin’s price on November 11, 2024.
MicroStrategy Inc bought about 27,200 Bitcoin for around $2.03 billion, the largest purchase by the crypto hedge-fund proxy since just after it began acquiring the digital asset more than four years ago.
MicroStrategy’s Bitcoin Buying Strategy
The enterprise software maker, whose corporate strategy now includes buying the cryptocurrency, bought the tokens between Oct 31 and Nov 10, according to a statement on Monday. It’s the largest amount of tokens purchased since the firm announced in December 2020 that it snapped up 29,646 Bitcoin.
MicroStrategy co-founder and Chairman Michael Saylor decided to invest in Bitcoin in 2020 as a hedge against inflation. The firm initially used cash to make the purchases and has shifted to using the proceeds from the issuance and sale of stock, as well as convertible debt sales, to leverage its buying power.
Impact on MicroStrategy’s Stock Price
The strategy, along with the surge in the value of Bitcoin, has helped MicroStrategy to outperform every major US stock including AI bellwether Nvidia Corp since the middle of 2020. MicroStrategy’s stock has risen more than 2,500% since August 2020. Bitcoin is up around 660% during the same period.
The latest purchase raised MicroStrategy’s Bitcoin holdings to around $24 billion, based on Monday’s record price of more than $85,500 for the digital currency. Bitcoin has received a boost from US President-elect Donald Trump’s embrace of the asset class. MicroStrategy is the largest publicly-traded corporate holder of Bitcoin besides BlackRock’s US exchange-traded fund.
MicroStrategy’s Total Bitcoin Holdings
As of Nov 10, the Tysons Corner, Virginia-based company together with its subsidiaries held about 279420 Bitcoin valued at an aggregate purchase price of approximately $11.9 billion and an average purchase price of around $42,692 per Bitcoin inclusive of fees and expenses.
The firm’s shares jumped as much as 24% to a record $335 on Monday. That topped the previous all-time high reached in March 2000 when MicroStrategy was among the most popular stocks during the so-called Internet Bubble.
Saylor was one of three MicroStrategy executives that agreed in December 2000 to pay $11 million to settle US Securities and Exchange Commission fraud charges that they caused the company to inflate its financial results for 21 months.
Conclusion
MicroStrategy’s big bet on Bitcoin continues to pay off, with its share price hitting new highs as the cryptocurrency’s price continues to rally. The company shows no signs of slowing down its Bitcoin accumulation strategy anytime soon.
