MicroStrategy Acquires 51,780 Bitcoin for $4.6 Billion
Business intelligence firm MicroStrategy has increased its Bitcoin (BTC) investment following President-elect Donald Trump's victory. This event on November 5 has acted as a catalyst for the crypto market, promoting further investment in digital assets.
Bitcoin Holdings Exceed $29 Billion
Under the leadership of Michael Saylor, MicroStrategy announced it has acquired approximately 51,780 Bitcoin for around $4.6 billion. This acquisition is the largest since the company's Bitcoin buying strategy began over four years ago. According to a filing with the US Securities and Exchange Commission, these tokens were purchased between November 11 and November 17. With this acquisition, MicroStrategy's total Bitcoin holdings now exceed $29 billion or 331,200 BTC.
Saylor's entry into Bitcoin commenced in 2020 as a strategy to hedge against inflation. Initially funded through cash reserves, the company has shifted to using proceeds from stock issuances and convertible debt sales to increase its purchasing power in the cryptocurrency market. Saylor aims to raise $42 billion over the next three years to strengthen the company's BTC portfolio and transition MicroStrategy into a leading crypto bank.
BTC Yield Rises to 20.4% Amid Market Optimism
Recent data from South Korea-based crypto analytics firm CryptoQuant shows the impact of MicroStrategy's latest purchase on its Bitcoin statistics:
- BTC Holdings: Increased from 279,420 BTC to 331,200 BTC
- MSTR Realized Price: Rose from $42,692 to $49,874
- MSTR Market Value to Realized Value (MVRV): Adjusted from 2.12 to 1.80
- Percentage of BTC Owned by MicroStrategy: Increased from 1.412% to 1.674%
This transaction follows another significant acquisition on November 11, during which Saylor noted that the company’s treasury operations had yielded a 7.3% return in Bitcoin, equating to a net benefit of approximately 18,410 BTC for shareholders. Following the recent announcement and the upward trend in Bitcoin price over the past two weeks, Saylor disclosed that these metrics have risen to a BTC yield of 20.4% and a net benefit to shareholders of 51,470 BTC.
The correlation between MicroStrategy’s stock (MSTR) and Bitcoin’s price has been notable. After Bitcoin reached a record high of $93,300 on November 13, MicroStrategy’s stock also hit an all-time high of $383. However, as Bitcoin retraced to around $90,650—a 9% increase over the past week—MSTR's share price declined to approximately $359 over the weekend, highlighting the strong link between the cryptocurrency and the firm's stock performance.
Featured image from DALL-E, chart from TradingView.com