MicroStrategy Purchases 149,880 Bitcoins for $13.5 Billion in November
The performance of Bitcoin #BTC over the past three months has significantly increased the stock value of MicroStrategy Inc. (NASDAQ: MSTR), a company specializing in enterprise analytics and mobility software. MicroStrategy's stock has risen over 500 percent year-to-date, trading above $375 during the mid-New York session.
With a market capitalization of $83.9 billion, MicroStrategy has attracted global investors, including European central banks. The company's success has inspired numerous other companies to adopt Bitcoin as a strategic reserve asset. Additionally, nation-states, particularly the United States, are considering Bitcoin for their reserves to address the ongoing debt crisis.
MicroStrategy Record Month of Bitcoin Purchases
In a post on X, Michael Saylor announced that MicroStrategy raised $13.5 billion in November and acquired 149,880 Bitcoins by month-end. This acquisition is part of a larger plan to raise $42 billion over the next three years to enhance its Bitcoin strategy.
Saylor reported that the Bitcoins were purchased at an average price of approximately $90,231, resulting in a net benefit of 97,500 BTC for shareholders. Institutional investors have shown strong interest in diversifying into cryptocurrencies.
Fred Thiel, Chairman and CEO of MARA Holdings (NASDAQ: MARA), remarked on the potential benefits of adding Bitcoin as a treasury asset for creating shareholder value. MicroStrategy aims to hold its Bitcoin long-term and plans to become the largest BTC bank. Recently, it purchased 15,400 Bitcoins on December 2 for about $1.5 billion, increasing its total holdings to 402,100 Bitcoins and achieving a 63 percent BTC yield year-to-date.
Despite this success, Peter Schiff, chief economist at Europac and Schiffgold, criticized MicroStrategy’s approach, indicating that shareholders endure ongoing stock market dilution. He cautioned that the next Bitcoin bear market could jeopardize both the company and its shareholders.
Market Impact
Bitcoin has performed strongly over the past year, aided by Saylor's periodic purchases. The cryptocurrency has stabilized around $96k after a notable rally in early November following Donald Trump's electoral victory.
On-chain data shows that 400 new Bitcoin whales, holding between 100 and 10,000 BTCs, joined the network recently. A rally beyond $100k is anticipated soon, driven by robust fundamentals.