Business intelligence firm MicroStrategy has ramped up its investment in Bitcoin (BTC) following the election victory of President-elect Donald Trump. This pivotal moment on November 5 created a catalyst for the broader cryptocurrency market, encouraging further investments in digital assets.

Bitcoin holds more than $29 billion

Led by Bitcoin supporter Michael Saylor, MicroStrategy revealed on Monday that it has purchased approximately 51,780 Bitcoin for about $4.6 billion. This purchase marks the company's largest acquisition since it began its Bitcoin buying strategy over four years ago.

According to filings submitted to the U.S. Securities and Exchange Commission, these tokens were purchased over the period from November 11 to November 17. With this latest acquisition, the total Bitcoin held by MicroStrategy has now exceeded $29 billion or 331,200 BTC.

Saylor's journey into Bitcoin began in 2020 as an inflation hedge strategy. Initially funded through cash reserves, the company shifted to using proceeds from stock issuance and selling convertible debt to increase purchasing power in the cryptocurrency market.

Michael Saylor has also reaffirmed his commitment to this strategy. He aims to raise $42 billion in the next three years to further bolster the company's BTC portfolio and turn MicroStrategy into a leading cryptocurrency bank.

BTC yield increased to 20.4% amid optimistic market conditions

Recent data from South Korea-based cryptocurrency analytics firm CryptoQuant highlights the impact of MicroStrategy's latest purchase on the company's Bitcoin statistics:

  • BTC holdings: Increased from 279,420 BTC to 331,200 BTC

  • Actual price of MSTR: Increased from $42,692 to $49,874

  • MSTR market value compared to actual value (MVRV): Adjusted from 2.12 to 1.80

  • BTC ratio owned by MicroStrategy: Increased from 1.412% to 1.674%

This latest transaction took place shortly after another significant acquisition on November 11, in which Saylor noted that the company's treasury operations yielded 7.3% Bitcoin, corresponding to a net gain of approximately 18,410 BTC for shareholders.

However, with the announcement on Monday and the notable upward trend in Bitcoin prices over the past two weeks, Saylor revealed that these metrics have increased to a BTC yield of 20.4% and a net benefit for shareholders of 51,470 BTC.

The correlation between MicroStrategy's stock (MSTR) and Bitcoin prices has also been particularly noteworthy in recent weeks. Following Bitcoin's record high of $93,300 on November 13, MicroStrategy's stock also reached an all-time high of $383.

However, as the leading digital asset in the market dipped to around $90,650 - up 9% from the previous week - MSTR's stock price also fell to about $359 over the weekend, highlighting the close relationship between cryptocurrency and the company’s stock performance.