MicroStrategy Acquires Major Bitcoin Stake, Boosting Holdings to Over $14 Billion
By: Eliza Bennet
MicroStrategy, the business intelligence software firm led by Michael Saylor, has yet again made a significant addition to its Bitcoin holdings. The company recently announced the purchase of 18,300 BTC valued at approximately $1.11 billion. This acquisition brings MicroStrategy’s total Bitcoin holdings to an astounding 244,800 BTC, equating to roughly 1% of all Bitcoin ever issued. As of now, the company's Bitcoin assets are valued around $14 billion.
The purchase was disclosed in a recent filing with the US Securities and Exchange Commission (SEC), detailing that the acquisition took place between August 6 and September 12, 2024. This is the largest Bitcoin purchase by the company in more than three years. The average purchase price paid for these Bitcoin amounts to approximately $38,585 per BTC.
The latest acquisition was financed through the issuance and sale of common shares, a strategy which has been part of MicroStrategy’s broader capital allocation plan. In August, the company executed a 10-for-1 stock split to make its shares more accessible to both investors and employees. This move forms a crucial part of their long-term strategy to bolster Bitcoin adoption and maintain their status as a corporate pioneer in the crypto space.
Michael Saylor, a vocal advocate for Bitcoin, has long viewed the cryptocurrency as a superior store of value compared to traditional assets like cash, bonds, or gold. Despite the inherent volatility in the cryptocurrency market, Saylor remains firmly confident in Bitcoin’s long-term potential. This sentiment is further supported by his projection that Bitcoin could eventually reach a value of $13 million by 2045, accounting for approximately 7% of the world’s capital.
The influence of MicroStrategy's investment strategy extends beyond just the realm of Bitcoin. The company’s stock (MSTR) has seen significant gains, more than doubling this year, far surpassing the approximate 40% increase in Bitcoin price over the same period. This relationship between MicroStrategy's stock performance and Bitcoin's market trends highlights the company's strong correlation with cryptocurrency market movements.
As of the latest reports, Bitcoin is trading at $58,820, reflecting a 2.3% increase in the last 24 hours, and over an 8% increase over the past week. This positive performance signals a potential recovery in the broader cryptocurrency market that has recently seen heightened volatility. Some market analysts suggest that Bitcoin’s ability to break through its current resistance level, particularly the 200-day exponential moving average at $59,775, could pave the way for further gains.
MicroStrategy’s ongoing commitment to Bitcoin investment underscores the increasing institutional interest in cryptocurrency as a hedge against inflation and a viable asset class. The company, headquartered in Tysons Corner, Virginia, began its Bitcoin acquisition strategy in 2020, and has since become a bellwether for other institutions considering similar moves into the cryptocurrency market.
