MicroStrategy has expanded its Bitcoin (BTC) holdings to 279,420 BTC, worth nearly $23 billion at current prices, underscoring its unwavering commitment to the cryptocurrency.
In a Nov. 11 announcement, the business intelligence firm revealed it had acquired 27,200 BTC for approximately $2.03 billion in cash. The purchases, made between Oct. 31 and Nov. 10, were at an average price of $74,463 per Bitcoin, including fees.
Funding Through Share Sales
The company financed its latest Bitcoin acquisition through proceeds from selling its shares. MicroStrategy disclosed entering sales agreements in August and October, raising about $2 billion from selling 7.8 million shares by Nov. 10. MicroStrategy’s Bitcoin acquisition strategy has delivered significant returns. From Oct. 1 to Nov. 10, its BTC yield—a measure of acquisition performance—was 7.3%, bringing its year-to-date BTC yield to an impressive 26.4%.
Market Impact and Share Price Surge
The news comes amid a surge in MicroStrategy’s stock price, which jumped 19.9% following Donald Trump’s victory in the U.S. presidential election on Nov. 5. This rally reflects investor confidence in the company’s Bitcoin-focused strategy.
Strong ROI on Bitcoin Investments
MicroStrategy’s Bitcoin investments have paid off handsomely, with the company’s return on investment exceeding 100% as of Nov. 10, according to “Saylor Tracker,” a portfolio tracker named after executive chairman Michael Saylor. Before its latest purchase, the tracker estimated the firm’s Bitcoin holdings to be worth over $20.5 billion.
Leading Corporate Bitcoin Holder
MicroStrategy remains the largest corporate Bitcoin holder, having purchased BTC 42 times at an average price of $39,292, according to BitcoinTreasuries data. It leads other major corporate investors, including Marathon Digital and Riot Platforms, whose BTC holdings are valued at approximately $2.1 billion and $840 million, respectively. This aggressive strategy cements MicroStrategy’s position as a cornerstone Bitcoin investor, continuing to bet big on the cryptocurrency’s future.
Featured image from: cointelegraph.com