MicroStrategy bought $2 billion in Bitcoin, raising its holdings to 279,420 BTC and earning huge unrealized gains.
The company’s stock soared after funding its Bitcoin buys through equity and debt as Bitcoin prices climbed.
The increase in MicroStrategy's stock following Trump's win shows its important correlation with Bitcoin’s price movements.
From October 31 to November 10, 2024, MicroStrategy invested nearly $2.03 billion to buy 27,200 Bitcoin, paying an average of $74,463 each. This big purchase shows the company’s strong dedication to its bold Bitcoin strategy. They funded the buy by selling about 7.8 million shares, raising close to $2 billion. This approach matches MicroStrategy’s ambitious goal of continuing to grow its Bitcoin holdings.
The Record-Breaking Bitcoin Holdings of MicroStrategy
As of right now, MicroStrategy has 279,420 Bitcoin, valued at $11.9 billion. The company's strategy of purchasing Bitcoin during market variations is shown in its average acquisition price of $42,692.
Consequently, this puts MicroStrategy in an unrealized profit position of around $11.4 billion, with Bitcoin currently trading above $87,000. The recent acquisition further solidifies MicroStrategy’s position as the largest corporate holder of Bitcoin, placing it well ahead of Marathon Digital and Riot Platforms, which collectively hold less than $3 billion in BTC.
Funding Strategy and Stock Performance Surge
To fuel its Bitcoin accumulation, MicroStrategy announced a unique “21/21” funding plan earlier. MicroStrategy is to raise $21 billion in debt and another $21 billion in equity over the next three years. The company's stock has also increased together with Bitcoin's rally, increasing by over 500% this year and ahead of most S&P 500 companies.
Notably, following Donald Trump’s recent election victory, MicroStrategy’s stock surged 19.9% on November 8. This upward momentum came just before the firm’s latest Bitcoin purchase, underscoring the stock’s sensitivity to Bitcoin’s price movements.
Moreover, MicroStrategy's Bitcoin return tracker, “Saylor Tracker,” reported over 100% gains on its BTC investments as of November 10. The firm’s Bitcoin holdings reached a value of $20.5 billion, even before considering the recent purchase. As MicroStrategy adds its BTC reserves, its portfolio tracker provides transparency to shareholders and enthusiasts, enhancing its appeal as a Bitcoin-focused entity.
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