MicroStrategy Expands Bitcoin Holdings by 55,500 BTC for $5.4 Billion
MicroStrategy Inc (NASDAQ: MSTR), a US business intelligence firm, has increased its Bitcoin holdings by purchasing an additional 55,500 BTC for approximately $5.4 billion. This acquisition makes MicroStrategy the largest corporate holder of Bitcoin, totaling 386,700 BTC.
Record-Setting Acquisition
The recent purchase occurred between November 21 and 24, following a $3 billion convertible notes offering. As of November 24, 2024, MicroStrategy has invested around $21.9 billion in Bitcoin at an average price of $56,761 per BTC. The company reported Bitcoin yields of 35.2% quarter-to-date (QTD) and 59.3% year-to-date (YTD).
Year to date, $MSTR's treasury operations delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders, or ~341 BTC per day. At $100K per BTC, that would equate to $11.2 billion for the year so far, or $34.1 million per day.
— Michael Saylor⚡️ (@saylor) November 25, 2024
MicroStrategy began accumulating Bitcoin in August 2020 under co-founder and then-CEO Michael Saylor, who advocated for Bitcoin as "digital gold" and a hedge against inflation. The firm has financed its acquisitions through equity sales, convertible notes, and corporate cash flow, drawing interest from institutional investors and crypto enthusiasts.
Saylor Transitions to Executive Chairman
In August 2022, Saylor stepped down as CEO to focus on Bitcoin strategy, becoming Executive Chairman. His successor, Phong Le, now manages core business operations. This shift allowed MicroStrategy to enhance its Bitcoin acquisition strategy, solidifying its reputation as a significant player in corporate Bitcoin adoption.
Ripple Effect on Other Companies
MicroStrategy's approach has influenced other firms to consider Bitcoin in their strategies. Metaplanet, a publicly listed company in Tokyo, adopted Bitcoin as a reserve asset in April 2024, citing MicroStrategy's success as motivation. Recently, Metaplanet increased its Bitcoin reserves by 124 BTC.
Other companies are also reassessing their treasury strategies. On November 25, Semler Scientific Inc announced the purchase of 297 BTC, increasing its total to 1,570 BTC. Additionally, BlackRock acquired $35 million worth of BTC in September, adding to a previous $1 billion investment in July.