MicroStrategy sets a new record with its largest Bitcoin purchase ever, acquiring 55,500 BTC worth $5.4 billion, reinforcing its leadership in BTC investments.
MicroStrategy, the largest corporate holder of Bitcoin, has announced its most significant acquisition yet, purchasing 55,500 BTC for a total of $5.4 billion between November 18 and November 24, 2024. The average price per Bitcoin was $97,862, marking a bold move as the company solidifies its position as a leader in BTC investment.
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM
— Michael Saylor⚡️ (@saylor) November 25, 2024
Record-Breaking Bitcoin Holdings
With this acquisition, MicroStrategy’s total Bitcoin holdings now stand at 386,700 BTC, worth over $37 billion at current market prices. The company’s cumulative Bitcoin investments amount to $21.9 billion, with an average purchase price of $56,761 per Bitcoin.
Aggressive Capital-Raising Efforts
MicroStrategy financed the acquisition through a $3 billion debt offering, which yielded net proceeds of $2.97 billion, and the sale of 5.6 million shares for $2.46 billion during the same week. Additionally, the company has outlined plans to raise $42 billion in capital over the next three years, leveraging a mix of equity and fixed-income securities to continue its Bitcoin-focused strategy.
Impressive Growth and Stock Performance
The company’s Bitcoin-focused strategy has paid off significantly, with its stock price surging 515% in 2024. MicroStrategy briefly entered the top 100 U.S. publicly traded companies by market capitalization and is trading premarket at $436, reflecting a 3.3% increase. The Nasdaq 100 Index, set to be rebalanced on December 20, may include MicroStrategy in its rankings, given the company’s meteoric rise.
Strategic Bitcoin Yield and Debt Offering
MicroStrategy’s year-to-date Bitcoin Yield of 59.3% highlights the effectiveness of its aggressive acquisition strategy while managing share dilution. The company’s recent $3 billion convertible debt sale was completed at a 0% coupon with a 55% conversion premium, signaling strong investor confidence.
A Continuing Bitcoin Strategy
Since adopting its Bitcoin acquisition strategy in 2020, MicroStrategy has been in the spotlight for its large-scale purchases. This latest acquisition reinforces its role as a trailblazer in corporate Bitcoin investment and underscores its belief in Bitcoin as a long-term asset.
This move not only secures MicroStrategy’s dominance in the crypto market but also sets the stage for future growth as it continues to expand its Bitcoin portfolio.
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