- MicroStrategy acquires 51,780 coins valued at approximately $4.6 billion.
- It seeks to raise $42 billion for the eventual purchase of more Bitcoins.
MicroStrategy, the world’s largest public Bitcoin holder-keeps piling on the cryptocurrency as prices have been surging sky-high. The company, on Nov. 18, declared that it had bought 51,780 BTC for around $4.6 billion at an average price of $88,627 per Bitcoin. This has taken the company’s total Bitcoin holdings to an astonishing 331,200 BTC with an overall investment of $16.5 billion.
MicroStrategy had been making consecutive purchases of Bitcoins after rallying in the cryptocurrency market. MicroStrategy revealed that it had raised cash for this acquisition based on share sales made between November 11 and November 17. The proceeds from these sales amount to $4.6 billion. Its filing with the Securities and Exchange Commission states, MicroStrategy said.
Aggressive Bitcoin Approach by MicroStrategy
The acquisition fits well into MicroStrategy’s long-term 21/21 strategy. Through this strategy, it would raise $42 billion in three years by offering $21 billion in equity and $21 billion in debt offerings. This funding would support further BTC buying. Since MicroStrategy began its spree of buying Bitcoin, it has spent $16.5 billion at an average cost of $49,874 per BTC.
MicroStrategy kick-started its Bitcoin journey in August 2020, which unfolded new perspectives for the company to use the cryptocurrency not only as an inflation hedge but also as a diversification tool for the corporate treasury. That’s why publicly traded companies like Bitcoin miner Marathon Digital Holdings (MARA) and a healthcare firm Semler Scientific (SMLR) draw inspiration from its openly sourced Bitcoin reserve strategy.
For the company, the yield for BTC comes in at a rather impressive 41.8% year-to-date and 20.4% since October 1. Such high performance would likely stimulate more interest to invest from the retail sector further increasing the attractiveness of this digital asset called Bitcoin.
In a related development, investment firm Metaplanet Inc. of Japan issued bonds worth 1.75 billion Yen or $11.3 million. The issue proceeds will be utilized in buying Bitcoins, thus emphasizing more that the market as an institution is embracing cryptocurrency.
With this relentless accumulation and very innovative approach to Bitcoin holding, MicroStrategy appears to be confirming the value of the transformative asset. It sets a strong precedent in leading corporate investment into Bitcoins, which will probably foster more institutional investment around the world.
The company continues to fund its future bitcoin purchases through its stock offerings, playing a greater role in the cryptocurrency market. It has been aligned with the approach of the co-founder and executive chairman of MicroStrategy, Michael Saylor, which is to promote the value of Bitcoin as a corporate asset.
