MicroStrategy Inc. has once again grabbed headlines with its bold strategy to acquire Bitcoin (BTC). The company recently purchased Bitcoin worth $4.6 billion, increasing its total BTC holdings significantly.
In line with its commitment to growing its BTC reserves, the enterprise software company acquired around 51,780 Bitcoin between November 11th and 17th, as per a recent submission to the SEC.
This latest acquisition builds on previous purchases in October and September, bringing MicroStrategy’s total Bitcoin holdings to an impressive $30 billion.
Michael Saylor, the founder of MicroStrategy, also shared his views on the acquisition…
Following this move, MicroStrategy’s stock (MSTR) soared by approximately 13% on November 18th, reaching an all-time high.
Impacts on MicroStrategy’s Stock Performance
This impressive performance underscores the company’s success in 2024, with MSTR shares recording a remarkable 500% surge year-to-date, far surpassing Microsoft’s 11% growth during the same period, according to Yahoo Finance.
With MSTR shares currently trading at $384.79 on Google Finance, MicroStrategy’s aggressive BTC strategy is proving to be lucrative, generating substantial returns through stock appreciation and the increasing value of its digital assets.
Moreover, the company is planning to generate $1.75 billion via a private sale of zero-interest convertible senior notes maturing in December 2029, showcasing its dedication to expanding its Bitcoin portfolio.
Response from the Community
One user on X lauded MicroStrategy’s actions, saying,
“Impressive moves! MicroStrategy is playing a strategic game while others remain stagnant.”
However, critics like Peter Schiff took the chance to provide their perspective, stating,
Despite facing criticism from individuals like Schiff, MicroStrategy has asserted itself as the largest institutional holder of Bitcoin, acquiring 331,200 BTC at a total cost of $16.5 billion—considerably below the current market valuation.
This milestone comes as Bitcoin reaches unprecedented highs, surpassing $90,000 post the U.S. election.
As of the most recent update, BTC was valued at $91,767.56, showing a marginal 0.03% drop in the last 24 hours but maintaining robust weekly and monthly gains of 2.72% and 34.19%, respectively, based on CoinMarketCap data.
MicroStrategy’s Future Strategy
The recent Bitcoin purchase by MicroStrategy was financed by selling around 13.6 million company shares, aligning with its ambitious “21/21 plan.”
This strategy aims to raise $42 billion via equity and fixed-income offerings over three years, demonstrating the firm’s commitment to expanding its BTC holdings.
Since adopting Bitcoin as a key reserve asset in August 2020, MicroStrategy has utilized it as a hedge against inflation and to diversify its treasury.
The company’s transparent BTC reserve strategy has inspired other public firms such as Marathon Digital Holdings and Semler Scientific to adopt similar approaches, indicating a growing trend in corporate Bitcoin investments.