MicroStrategy just acquired 2,530 BTC for $243 million
MicroStrategy recently filed an 8-K form with the SEC, revealing it paid an average of $95,972 for each Bitcoin in its latest investment. Currently, Bitcoin is valued at $91,777, indicating a loss of about 4.4% on this investment. The company holds around 450,000 BTC, purchased at an average price of $62,691, totaling about $28.2 billion. This amount is over 45.5% lower than Bitcoin’s current value of $41.04 billion.
Founded in 1989, MicroStrategy shifted its focus to Bitcoin acquisition in 2020. It now owns over 1% of all Bitcoin, aiming to reach 2%. This strategy has made MicroStrategy the leading corporate holder of Bitcoin. During a time when institutional investors found it challenging to invest in Bitcoin, MicroStrategy provided a way for them to gain exposure.
Reports from late November indicated that major Wall Street firms were buying MicroStrategy shares to gain leveraged exposure to Bitcoin. Analyst Mark Palmer noted that MicroStrategy’s ability to generate yield on its Bitcoin holdings through leverage sets it apart from other investment options like Bitcoin ETFs.
However, MicroStrategy shares fell significantly around the same time, prompting Citron Research to short the stock while remaining bullish on Bitcoin. They argued that MicroStrategy’s stock performance had diverged from Bitcoin’s fundamentals.
Michael Saylor recently criticized bonds as “toxic” and encouraged companies to invest in Bitcoin instead. He highlighted that since adopting its Bitcoin strategy, MicroStrategy has seen Bitcoin’s value rise while bond returns have declined. The company continues to grow its Bitcoin holdings through debt and equity strategies, outpacing share dilution.
