Bitcoin News – Michael Saylor’s MicroStrategy Adds $1.1 Billion in Bitcoin: Stock Up 124% in 2023
Bitcoin News – MicroStrategy shares soared more than 8% on Friday after the company’s founder, Michael Saylor, announced another significant Bitcoin acquisition worth $1.1 billion. The stock jumped 24% for the week, contributing to a year-to-date rise of 124%.
MicroStrategy’s Latest Bitcoin Purchase
On social media platform X, Saylor shared that MicroStrategy’s average purchase price for Bitcoin over the four years it has been acquiring the cryptocurrency is $38,585 per coin. With Bitcoin currently trading near $60,000, the company’s massive holding of 244,800 bitcoins is now valued at $14.6 billion.
Founded in 1989, MicroStrategy initially focused on enterprise software and cloud-based services. However, its value is now almost entirely linked to its Bitcoin holdings, positioning it as a corporate proxy for the world’s largest cryptocurrency. According to Bitcoin Treasuries, MicroStrategy remains the biggest corporate holder of Bitcoin.
BTC Yield and Shareholder Value
In his post, Saylor also highlighted a new metric introduced by MicroStrategy— the “BTC yield.” According to Saylor, this metric indicates a 17% return for the year, reflecting the additional value created for shareholders through the company’s strategy of issuing stock to buy Bitcoin.
“We’re basically giving people different types of Bitcoin exposure,” Saylor said in an interview with CNBC this week. “MicroStrategy’s mission is to securitize Bitcoin and serve as the institutional bridge between traditional, mainstream investors and Bitcoin.”
Stock Performance vs. Bitcoin
Despite a strong performance this week, MicroStrategy shares remain 26% below their March highs, closing Friday at $141.47. Nevertheless, the company’s stock is significantly outperforming Bitcoin, which is up 35% this year.
Saylor explained that owning MicroStrategy offers investors a way to gain Bitcoin exposure with additional benefits, such as leverage and downside protection.
“A lot of people don’t want to own, or they can’t own Bitcoin,” Saylor said. “Some would say, ‘Give me the volatility of the S&P and half of the performance of Bitcoin, and I’d be totally happy.’”
Key Takeaways
- MicroStrategy’s Bitcoin Holdings: The company now holds 244,800 bitcoins worth $14.6 billion.
- BTC Yield: MicroStrategy reports a 17% return for shareholders through its Bitcoin acquisition strategy.
- Stock Performance: MicroStrategy shares are up 124% this year, outperforming Bitcoin’s 35% rise.
- Investment Opportunity: MicroStrategy offers traditional investors an alternative way to gain exposure to Bitcoin with additional advantages such as leverage and downside protection.
This latest development continues to solidify MicroStrategy’s position as a key player in the institutional Bitcoin space, with Saylor reaffirming the company’s commitment to integrating Bitcoin into its business strategy.
FAQ: MicroStrategy’s Latest Bitcoin Purchase and Stock Surge
What caused MicroStrategy’s stock to jump recently?
MicroStrategy’s stock surged more than 8% after the company announced it had purchased an additional $1.1 billion worth of bitcoin. This announcement boosted investor confidence, contributing to a 24% rise in its stock price for the week.
How much bitcoin does MicroStrategy now hold?
MicroStrategy currently holds 244,800 bitcoins, which are valued at approximately $14.6 billion based on the current price of bitcoin.
Why does Michael Saylor refer to MicroStrategy as a bridge between traditional investors and bitcoin?
Saylor explains that MicroStrategy offers institutional investors exposure to bitcoin in a securitized form, making it easier for mainstream investors to access the cryptocurrency market without directly holding bitcoin.
What is the “BTC yield” mentioned by MicroStrategy?
The “BTC yield” is a metric introduced by MicroStrategy to indicate the value created for shareholders through the company’s bitcoin investments. For 2023, the BTC yield stands at 17%, reflecting a 17% increase in shareholder value from bitcoin-related activities.
What is the significance of MicroStrategy’s average bitcoin purchase price?
The company’s average purchase price for bitcoin over the past four years is $38,585 per coin. With bitcoin currently trading near $60,000, MicroStrategy has significantly increased the value of its holdings.
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