Nasdaq-listed software firm MicroStrategy (MSTR), the largest corporate holder of bitcoin (BTC), has added another 18,300 BTC to its holdings for approximately $1.11 billion, according to a recent announcement from Executive Chairman Michael Saylor.
As of September 12, 2024, the company now holds a total of 244,800 bitcoins, acquired for roughly $9.45 billion at an average price of $38,585 per BTC.
17% YTD Return on Bitcoin Strategy
This latest purchase comes after the firm reported a 17% year-to-date (YTD) return on its Bitcoin holdings, further validating its aggressive Bitcoin acquisition strategy. The 18,300 BTC purchase follows a series of previous acquisitions, with the company continuing to view Bitcoin as a core component of its treasury.
MicroStrategy has consistently funded its Bitcoin purchases through various methods, including debt issuance. Its previous major acquisition came after an $800 million convertible note offering to institutional investors.
This move echoes the company’s strategy from earlier this year when it raised $700 million for a similar BTC purchase.
MicroStrategy’s Influence on the Bitcoin Market
Since starting its Bitcoin acquisition in 2020, MicroStrategy has led the charge in advocating for the adoption of Bitcoin as a reserve asset for corporate treasuries.
Despite some companies like Metaplanet adding modest amounts of Bitcoin to their balance sheets, MicroStrategy remains one of the most significant players in this space, with nearly 1.2% of the total Bitcoin supply.
As of August 10, MicroStrategy held 226,500 BTC in reserves, valued at $13.77 billion, with an average acquisition price of $37,000 per BTC. At that time, Bitcoin was trading around $60,500, giving the company $5.39 billion in unrealized gains.
Since starting its Bitcoin buying spree in August 2020, MicroStrategy’s strategy has significantly outperformed the S&P 500 (SPX). MicroStrategy’s stock (MSTR) surged over tenfold since then, delivering returns more than 16 times higher than the SPX during the same period.
