MicroStrategy Makes Largest Bitcoin Purchase, Boosts Holdings to 331,200 BTC
MicroStrategy, one of the world’s largest institutional holders of Bitcoin, continues to increase its holdings even as the cryptocurrency hits new price milestones. On November 18, 2024, the company revealed it had purchased an additional 51,780 Bitcoin (BTC) for approximately $4.6 billion, at an average price of $88,627 per coin. This acquisition raises MicroStrategy’s total Bitcoin holdings to a staggering 331,200 BTC, with a total investment of $16.5 billion.
MicroStrategy’s Growing Bitcoin Holdings: A Long-Term Strategy
MicroStrategy has become synonymous with Bitcoin accumulation, steadily adding to its stash of the leading cryptocurrency since its first purchase in 2020. The latest acquisition, which is its largest to date, adds 51,780 BTC to its portfolio, accounting for over 16% of the company’s total Bitcoin holdings. As of now, the average price MicroStrategy has paid per Bitcoin across all its purchases stands at $49,874.
This acquisition comes amidst a record-breaking surge in Bitcoin’s price, which recently surpassed $92,000 for the first time in history. According to data from CryptoQuant, this purchase is the largest Bitcoin acquisition by MicroStrategy, solidifying the company’s position as the largest publicly traded institutional holder of Bitcoin. MicroStrategy’s strategy of consistently acquiring Bitcoin, even as prices reach new highs, signals its belief in Bitcoin’s long-term value proposition.
Financing Bitcoin Purchases Through Share Sales
To fund this latest Bitcoin purchase, MicroStrategy utilized proceeds from a share sale completed in October 2024. Under an agreement with several financial institutions, including TD Securities, Barclays Capital, and others, the company sold 13.6 million shares, raising approximately $4.6 billion in capital. These proceeds were then used to acquire Bitcoin, further increasing its position in the cryptocurrency market.
In addition to the recent sale, the company still has about $15.3 billion in shares available for sale under the agreement, as disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on November 17, 2024. This gives MicroStrategy ample room to continue its Bitcoin accumulation strategy in the future.
MicroStrategy’s Vision: Bitcoin as a Long-Term Asset
Founded in 1989, MicroStrategy has transformed into a major player in the institutional Bitcoin space under the leadership of its founder, Michael Saylor. Since its first Bitcoin purchase of $250 million in August 2020, the company has consistently increased its holdings. Saylor has long viewed Bitcoin as a critical asset, describing it as the company’s “primary reserve currency.”
Saylor remains confident about Bitcoin’s future. Despite Bitcoin’s recent surge to historic highs, he dismissed concerns about potential retracements, stating, “I don’t think it is going to $60,000, it is not going to $30,000, I think it is going to go up from here,” during an appearance on CNBC.
As Bitcoin continues to hit new all-time highs, strategy of holding and adding to its Bitcoin reserves positions it as a key institutional player in the evolving cryptocurrency market.
In conclusion, aggressive Bitcoin accumulation strategy underscores its belief in the long-term potential of the cryptocurrency. By leveraging share sales to fund its acquisitions, the company is demonstrating its commitment to Bitcoin as a strategic asset for future growth. As the largest publicly traded institutional holder of Bitcoin, MicroStrategy’s moves will likely influence other institutional investors looking to enter or expand their positions in the Bitcoin market.
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