MicroStrategy Makes Its Largest Purchase as Bitcoin Hits $84,000

MicroStrategy Inc. has acquired 27,200 Bitcoin (BTC) for approximately $2.03 billion, marking its largest purchase since it began investing in the digital asset over four years ago. 

This acquisition occurred between October 31 and November 10, at an average price of $74,463 per Bitcoin, including fees.

MicroStrategy’s Bitcoin holdings are now worth $23 billion

Following this purchase, Bitcoin surged to a new record high of $84,000. MicroStrategy now holds 279,420 BTC, valued at nearly $23 billion at current market rates.

Michael Saylor, the company’s co-founder and chairman, first invested in Bitcoin in 2020 as a hedge against inflation. Initially, the firm used cash for these purchases, but it later adopted strategies such as issuing stock and convertible debt to enhance its purchasing capacity.

This investment approach, coupled with Bitcoin’s rising value, has significantly boosted MicroStrategy’s market performance. 

“While Saylor Was Stacking Sats, Bitcoin Haters, Jim Cramer, And Peter Schiff Kept, Calling For Bitcoin Zero. They’ve Criticized Bitcoin And Microstrategy’s Strategy At Every Turn, Even As Btc Hits All-Time Highs. Saylor Didn’t Panic Sell. Now, He’s Sitting On Billions In Profit,” influencer Ash Crypto wrote in a latest tweet.

Since mid-2020, the company’s stock has soared over 2,300%, outpacing major US stocks, including Nvidia. In comparison, Bitcoin’s value has risen by approximately 630% during the same timeframe.

Data from the “Saylor Tracker,” a tool monitoring MicroStrategy’s Bitcoin investments, shows the company’s returns on BTC exceeded 100% as of November 10. Before factoring in the latest acquisition, the firm’s holdings were already valued above $20.5 billion.

According to BitcoinTreasuries, MicroStrategy has made 42 Bitcoin purchases at an average cost of $39,292 per coin. The company remains the largest corporate holder of Bitcoin, with Marathon Digital and Riot Platforms following with holdings valued at $2.1 billion and $840 million, respectively.

The firm’s consistent strategy of BTC accumulation has also increased its appeal to institutional investors. In October, BlackRock, the largest Bitcoin ETF issuer, increased its stake in MicroStrategy to 5.2% 

In its third-quarter earnings report, MicroStrategy revealed plans to raise $42 billion in capital over the next three years to fund further Bitcoin acquisitions. At the current price, the firm’s BTC ROI has already surpassed 100%.