MicroStrategy Purchases 51,780 BTC for $4.6 Billion in One Week
MicroStrategy Inc (NASDAQ: MSTR) executive chairman Michael Saylor announced the purchase of 51,780 BTC worth $4.6 billion at an average price of $88,627. This acquisition increased the company's total Bitcoin holdings to 331,200 BTC, with a net investment value of $16.5 billion since September 2020.
To fund this purchase, MicroStrategy sold nearly 13.6 million MSTR shares for $4.6 billion. Saylor is recognized for his consistent purchasing of Bitcoin regardless of price fluctuations, stating, “I’ll be buying the top forever.”
MicroStrategy has an additional $15.3 billion of stock available for sale under its at-the-market share issuance program, as per its announcement. Recently, significant Bitcoin acquisitions have been made by various corporations and spot Bitcoin ETFs, including Semler Scientific, Metaplanet, and Marathon Digital.
✅ $MSTR bought 51,780 Bitcoin last week
✅ U.S. Bitcoin ETFs bought 20,560 Bitcoin last week
✅ $SMLR announced 215 Bitcoin buy
✅ $MARA is raising $700 million to buy Bitcoin🟧 Only 450 Bitcoin mined/day
Who is still selling?
— HODL15Capital 🇺🇸 (@HODL15Capital) November 18, 2024
This recent Bitcoin purchase has resulted in a return of 20.4% quarter-to-date (QTD) and 41.8% year-to-date (YTD) for MicroStrategy. The company has acquired Bitcoin at an average price of $49,000, confirming its status as one of the largest institutional holders. Saylor stated:
“Our $MSTR treasury operations in the first 17 days of November resulted in a BTC Yield of 20.4%, a net benefit to our shareholders of ~51,470 BTC.”
Saylor highlighted that MicroStrategy is just beginning its Bitcoin acquisition strategy, introducing its "42" strategy aimed at raising $42 billion to expand its holdings. This plan includes securing $21 billion in debt and raising another $21 billion through secondary stock offerings, all dedicated to Bitcoin purchases.
MicroStrategy (MSTR) Share Price Action
MicroStrategy (MSTR) stock has surged nearly 400% since the beginning of 2024, currently trading around $340, resulting in a valuation of $67 billion, which exceeds the market value of its Bitcoin holdings at $21 billion.
Despite these developments, MSTR's share price has shown minimal movement, gaining less than 1% at press time. According to Q3 2024 filings, JPMorgan increased its stake in MicroStrategy by 12.5% to 660,693 shares, valued at $111.39 million. This reflects JPMorgan's strategy to enhance its cryptocurrency portfolio, with MSTR share prices more than doubling since October 1, yielding over 100% gains on JPMorgan's investment.
If bullish trends continue, MSTR stock could reach $400 by the end of November. Investors are advised to conduct due diligence before making new investments following significant short-term gains.