MicroStrategy Inc. (MSTR), the software company led by Michael Saylor, continues to make waves with its aggressive Bitcoin purchasing strategy. In its latest move, the company announced a significant addition to its cryptocurrency holdings, purchasing 18,300 Bitcoin (BTC) between August 6 and September 12, 2024.
What Happened: MicroStrategy’s Latest Bitcoin Acquisition
MicroStrategy revealed it acquired the 18,300 Bitcoin for approximately $1.11 billion in cash at an average price of $60,408 per Bitcoin. This acquisition was funded using proceeds from a recent share issuance, part of a larger $2 billion offering previously announced by the company. The decision to increase its Bitcoin holdings comes as MicroStrategy’s stock continues to outperform all companies in the S&P 500, according to Executive Chairman Michael Saylor.
With this latest purchase, MicroStrategy now holds approximately 244,800 Bitcoins as of September 12, 2024. The company has spent a total of $9.45 billion on its Bitcoin acquisitions, with an average purchase price of $38,585 per Bitcoin.
MicroStrategy’s Bitcoin Yield Performance
A key metric for MicroStrategy is its Bitcoin Yield, a performance indicator that tracks the profitability of the company’s Bitcoin investments. From July 1 to September 2024, the company reported a Bitcoin Yield of 4.4%. Year-to-date, MicroStrategy’s Bitcoin Yield stands at an impressive 17.0%, highlighting the success of its cryptocurrency-focused strategy.
Michael Saylor’s Long-Term Bitcoin Strategy
Michael Saylor, a vocal proponent of Bitcoin, has made the cryptocurrency a central component of MicroStrategy’s corporate strategy. Since the company’s first Bitcoin purchase, Saylor has consistently advocated for Bitcoin as a store of value, positioning it as a hedge against inflation and a key investment for the future. With nearly a quarter of a million Bitcoin in its portfolio, MicroStrategy has cemented itself as one of the largest corporate holders of the digital asset.
As Bitcoin prices fluctuate, MicroStrategy’s strategy of accumulating Bitcoin in large quantities continues to shape its stock performance. The company’s approach also influences broader market sentiment towards institutional Bitcoin adoption.
What’s Next for MicroStrategy and Bitcoin?
As the company continues to acquire Bitcoin, investors and market watchers are keen to see how MicroStrategy’s Bitcoin holdings impact its long-term financial performance. With $9.45 billion invested in Bitcoin and a growing yield, the company’s cryptocurrency strategy remains a focal point for shareholders and Bitcoin enthusiasts alike.