MicroStrategy has made its largest bitcoin purchase since 2020 at US$2 billion, increasing its holdings as part of a long-term inflation hedging strategy.
MicroStrategy Inc. recently made its largest #bitcoin (BTC) purchase since 2020, acquiring about 27,200 bitcoins (worth about US$2.03 billion). The massive purchase, made between Oct. 31 and Nov. 10, was the most significant since the company began actively investing in cryptocurrencies more than four years ago, thanks to MicroStrategy's bitcoin-focused strategy led by co-founder and chairman Michael Saylor, Estimates show that at the recent bitcoin price of more than $86,500, total assets have grown to a staggering $24 billion.
Michael Saylor originally included bitcoin in MicroStrategy's investment approach in 2020 as a hedge against inflation. At first, the company relied on cash reserves to buy bitcoin, but soon switched to other financial instruments, including stocks and proceeds from the sale of convertible bonds. These moves increased MicroStrategy's purchasing power and allowed it to take full advantage of the rising value of bitcoin. This strategy has been extremely beneficial for the company, allowing it to outperform large U. S. stocks like NVIDIA starting in mid-2020. Over the same period, MicroStrategy's share price has risen over 2,500%, even outperforming bitcoin's impressive 660% rise. More recently, the share price rose 24% to a record high of $BTC As of November 10, #MicroStrategy and its subsidiary headquartered in Tysons Corner, Virginia, owned a total of 279,420 bitcoins, bringing the total value of their purchases to about $11.9 billion. With such a large amount of bitcoins, MicroStrategy is solidifying its reputation in the financial and #cryptocurrency markets. The company still owns more bitcoins than any other listed company, with the exception of Amrican exchange-traded fund BlackRock.
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