MicroStrategy has purchased 27,200 Bitcoin at a cost of $2.03 billion, solidifying its position as the largest corporate Bitcoin holder. The acquisition, announced on November 11, 2024, was funded through stock sales, further expanding MicroStrategy’s BTC reserves to a total of 279,420 coins, valued at approximately $23 billion.
MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd
— Michael Saylor (@saylor) November 11, 2024
This acquisition has spurred a 10% increase in MicroStrategy’s share price as Bitcoin continues to reach all-time highs.
MicroStrategy’s Strategic Acquisition Fuels Market Activity
The latest purchase from the Michael Saylor-led firm arrives during a peak period for Bitcoin, with prices recently hitting a record $82,000. The company acquired each Bitcoin for an average of $74,463, reinforcing its commitment to accumulating BTC despite potential market volatility.
Chart data via SaylorTracker.com
As Bitcoin’s market value climbs, MicroStrategy’s holdings have brought the company an unrealized gain of over $10 billion, with the firm reporting a 26.4% year-to-date yield on BTC holdings.
Funding Through Stock Sales: A Strategic Financial Move
MicroStrategy financed this purchase through stock sales, leveraging two agreements from August and October with financial institutions such as TD Securities, Barclays Capital, and Cantor Fitzgerald. This fundraising approach allowed the business intelligence giant to raise approximately $2.03 billion through the sale of nearly 8 million shares.
While the strategy could dilute share value, each of the company’s shares now represents approximately 0.00124464 BTC, positioning investors for potential gains if Bitcoin’s upward trend continues.
An Aggressive Bitcoin Strategy
As Bitcoin’s price trajectory remains positive, MicroStrategy aims to further expand its holdings with a long-term yield target of 6-10% annually over the next three years.
With unrealized profits exceeding $10 billion, the company’s ongoing strategy underscores its commitment to Bitcoin as a core asset.
The company’s actions may signal to other corporations the viability of substantial Bitcoin reserves as a hedge and investment, potentially reshaping corporate finance strategies and the intersection of institutional investment and digital assets in future.