MicroStrategy buys 55,000 Bitcoin for $5.4 billion, bringing holdings to 387,000.
The latest acquisition funded by convertible notes and share sales.
Michael Saylor remains confident in Bitcoin’s future despite market fluctuations.
MicroStrategy, under the leadership of Michael Saylor, has made another significant move to strengthen its Bitcoin portfolio. Between November 18 and November 24, the company acquired an additional 55,000 Bitcoin, bringing its total holdings to nearly 387,000 coins.
https://twitter.com/saylor/status/1861033309934862601
This latest purchase, valued at $5.4 billion, marks the largest acquisition by the Virginia-based software firm to date.
The acquisition was financed through a $3 billion convertible note offering and share sales. The purchase was made at an average price of approximately $97,862 per Bitcoin, reflecting the company’s ongoing strategy of using alternative financial instruments to fuel its crypto investments.
Based on Bitcoin's recent trading price of $56,761, the current value of MicroStrategy’s Bitcoin holdings is estimated to exceed $37 billion.
The company’s bold strategy continues to make headlines. Through several acquisitions, MicroStrategy’s Bitcoin holdings have now accumulated to an impressive $21.9 billion.
This marks a portion of the company's balance sheet, positioning it as one of the world's largest corporate holders of Bitcoin.
In recent filings with the U.S. Securities and Exchange Commission (SEC), the company outlined its reliance on convertible notes to raise capital, underscoring its commitment to its Bitcoin investment strategy.
MicroStrategy’s executive chairman, Michael Saylor, has been vocal about his bullish stance on Bitcoin. In a recent interview, he expressed confidence in the cryptocurrency's potential, revealing that the company has consistently outperformed the S&P 500, thanks to its substantial Bitcoin holdings.
Despite some recent stabilization in Bitcoin’s price, hovering around $95,000, Saylor remains optimistic about future gains, citing the company’s ability to generate large revenues due to its Bitcoin assets.
https://twitter.com/saylor/status/1859958862260121861
The timing of this purchase coincides with the broader market’s recent movements. Bitcoin’s surge in value followed President-elect Donald Trump's election, who promised to introduce favorable policies for digital assets.
Saylor has hinted at celebrating a potential $100,000 Bitcoin milestone on New Year’s Eve if the cryptocurrency reaches that level by December.
MicroStrategy's strategy of funding its Bitcoin purchases through convertible notes, which offer a 0% coupon rate and a 55% premium, has given the company the leverage it needs to continue expanding its crypto portfolio.
