MicroStrategy Makes Record-Breaking $5.4B Bitcoin Purchase in November
MicroStrategy– Business intelligence firm and significant corporate Bitcoin holder, MicroStrategy, has made another large Bitcoin acquisition. According to an 8-K filing with the Securities and Exchange Commission (SEC) on Monday, the company purchased an additional 55,500 BTC for approximately $5.4 billion, at an average price of $97,862 per Bitcoin, between November 18 and November 24. This acquisition marks the largest purchase of Bitcoin for the company to date, further cementing its position as one of the biggest institutional holders of the cryptocurrency.
Recent Debt Offering and Stock Sale to Fund Bitcoin Acquisition
MicroStrategy’s latest Bitcoin acquisition comes shortly after a major $3 billion debt offering, completed on November 21, with net proceeds of approximately $2.97 billion. In addition, the company sold 5,597,849 of its own shares between November 18 and November 24, raising about $2.46 billion. As of November 24, MicroStrategy still had roughly $12.8 billion worth of shares available for sale as part of its ongoing $21 billion equity offering. The firm is also targeting $21 billion in fixed-income securities, as it aims to raise a total of $42 billion over the next three years for further Bitcoin purchases.
MicroStrategy’s Bitcoin Holdings Soar to 386,700 BTC
With this latest purchase, MicroStrategy now holds a total of 386,700 BTC, worth over $37 billion at current market prices. According to Michael Saylor, the company’s co-founder and executive chairman, MicroStrategy’s total Bitcoin holdings have been acquired at an average price of $56,761 per Bitcoin, which amounts to a total cost of approximately $21.9 billion, including fees and expenses. This acquisition marks the third consecutive week of significant Bitcoin purchases by MicroStrategy. The company previously acquired around 51,780 BTC for $4.6 billion in cash in the week prior, with an average price of $88,627 per coin, as well as $2 billion worth of Bitcoin the week before that.
MicroStrategy’s Bitcoin Yield Strategy and Shareholder Benefits
MicroStrategy has implemented a key performance indicator called Bitcoin Yield to assess the change in its Bitcoin holdings relative to its diluted shares. As of November 24, the company’s Bitcoin Yield for the year stands at 59.3%, indicating significant growth in its Bitcoin holdings, even while managing share dilution. The company has been following a strategy of efficiently acquiring Bitcoin to maximize benefits for its shareholders. This growth in Bitcoin holdings reflects the company’s long-term strategy to continue accumulating the cryptocurrency.
Analysts Predict MicroStrategy Could Hold 4% of Bitcoin’s Circulating Supply by 2033
Looking to the future, analysts from research and brokerage firm Bernstein have predicted that MicroStrategy could end up holding 4% of Bitcoin’s circulating supply by the end of the decade. If this projection comes to fruition, the company would own approximately 830,000 BTC by 2033, which would be worth an estimated $830 billion at a price of $1 million per Bitcoin. This ambitious prediction highlights the company’s growing commitment to Bitcoin and its belief in the cryptocurrency’s long-term value.
MicroStrategy’s strategy of acquiring Bitcoin through a combination of debt offerings and equity sales reflects its belief in Bitcoin as a core asset for the company. The firm continues to build its Bitcoin holdings as part of its broader financial strategy, focusing on long-term growth and value appreciation. While its heavy reliance on Bitcoin as an asset may introduce volatility into its financials, the company is betting on Bitcoin’s potential to outperform traditional assets in the years to come.
In conclusion, MicroStrategy’s continued Bitcoin acquisitions, along with its latest $5.4 billion purchase, underscore its ongoing commitment to the cryptocurrency. With plans to further expand its holdings in the coming years, the company is positioning itself as one of the most significant corporate players in the Bitcoin space. However, as with all investments in cryptocurrencies, potential investors should be aware of the risks associated with such volatile assets.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment