MicroStrategy’s New Bitcoin Investment Business intelligence firm MicroStrategy has once again expanded its Bitcoin portfolio, announcing a significant purchase of 51,780 BTC, costing a total of $4.6 billion. This recent acquisition, made at an average price of $88,627 per Bitcoin, adds to the company’s already substantial digital asset holdings, which now total 331,200 BTC.
Back-to-Back Acquisitions Following Market Rally The new purchase follows a series of strategic Bitcoin buys by MicroStrategy, coinciding with the US presidential election and the subsequent surge in the crypto market. According to the firm’s latest filing with the Securities and Exchange Commission (SEC), MicroStrategy’s aggressive acquisition strategy has so far involved an investment of $16.5 billion in Bitcoin, with an average purchase price of $49,874 per BTC.
Funding the Acquisition Through Share Sales MicroStrategy funded this latest $4.6 billion Bitcoin acquisition using proceeds from a sale of company shares conducted between November 11 and 17. The successful fundraising allowed the firm to continue its aggressive Bitcoin accumulation.
Long-Term Strategy: The 21/21 Plan MicroStrategy has outlined an ambitious plan called the 21/21 strategy, aiming to generate $42 billion over the next three years. The strategy includes raising $21 billion in equity and $21 billion in debt to continue acquiring Bitcoin. This recent purchase aligns with the company’s long-term vision to dominate the corporate Bitcoin market.
In a recent interview with CNBC on November 14, 2024, MicroStrategy’s co-founder, Michael Saylor, expressed confidence that Bitcoin could hit $100,000 by the end of the year. A steadfast advocate for the cryptocurrency, Saylor dismissed fears of a potential decline, instead forecasting further price increases and reiterating his bullish outlook on Bitcoin’s future.
Boosting Investor Confidence With this purchase, MicroStrategy maintains its lead as the biggest corporate Bitcoin holder. The company’s significant holdings and recent accumulation are expected to bolster confidence among retail investors, potentially encouraging more participation in the crypto market.
Year-to-Date Bitcoin Performance MicroStrategy’s Bitcoin investments have shown solid performance, with a yield of 41.8% year-to-date and 20.4% since October 1. These numbers demonstrate the firm’s success in leveraging Bitcoin’s price movements and affirm the strategy’s effectiveness.
Metaplanet Inc. Enters the Crypto Market In a related development, Japanese investment company Metaplanet Inc. recently issued 1.75 billion Yen in bonds, equivalent to $11.3 million. The funds raised from this bond sale are set to be used for acquiring Bitcoin, marking the firm’s entry into the crypto investment space.
MicroStrategy’s recent Bitcoin purchase underscores the ongoing trend of major corporate players entering the crypto market, aiming to capitalize on the potential of digital assets as a long-term investment.
In a recent interview with CNBC on November 14, 2024, MicroStrategy’s co-founder, Michael Saylor, expressed confidence that Bitcoin could hit $100,000 by the end of the year. A steadfast advocate for the cryptocurrency, Saylor dismissed fears of a potential decline, instead forecasting further price increases and reiterating his bullish outlook on Bitcoin’s future.
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