The largest holder among Bitcoin whales, MicroStrategy, has struck again! According to documents submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, the company purchased an additional 55,500 bitcoins at an average price of $97,862 per coin from November 18 to 24, totaling $5.4 billion, setting a record for the largest single purchase in the company's history.
Unprecedented buying actions, where does the funding come from?
The funding for this large-scale Bitcoin purchase primarily comes from two significant financing plans: On November 21, MicroStrategy completed a bond issuance of up to $3 billion, netting $2.97 billion after expenses; simultaneously, the company sold 5.59 million shares from November 18 to 24, bringing in $2.46 billion.
According to the announcement, as of November 24, the company still has $12.8 billion worth of stock available for sale and plans to raise $42 billion in the next three years to continue purchasing Bitcoin.
Currently, MicroStrategy's Bitcoin holdings have reached 386,700 bitcoins, valued at approximately $36.5 billion. According to data shared by founder and executive chairman Michael Saylor, the average purchase cost of these bitcoins is $56,761 per coin, with a total investment amount of about $21.9 billion, resulting in an unrealized profit of approximately $14.6 billion.
Three consecutive weeks of aggressive purchases
This is already MicroStrategy's third consecutive week of large-scale Bitcoin purchases: the company purchased approximately 51,780 bitcoins for $4.6 billion in cash last week, with an average cost of about $88,627; the week before that, the company spent $2.03 billion to buy 27,200 bitcoins.
This wave after wave of strategy highlights MicroStrategy's determination to bet on Bitcoin in the long term.
It is worth mentioning that MicroStrategy has adopted an indicator called 'Bitcoin Yield' to measure the changes in the ratio of Bitcoin holdings to stock dilution. The company's Bitcoin yield has reached 59.3% year-to-date, demonstrating that while diluting equity, it has successfully increased Bitcoin holdings significantly, bringing potential returns to shareholders.
Possibly controlling 4% of Bitcoin circulation in the next 10 years
Research agency Bernstein predicts that MicroStrategy's ambitions extend far beyond this. Analysts point out that the company's holdings could potentially reach 4% of the total Bitcoin circulation over the next 10 years, which is about 830,000 bitcoins.
If the price of Bitcoin reaches $1 million per coin as predicted, the total value of these assets could reach $830 billion, marking the birth of a 'Bitcoin Empire'.
"MicroStrategy spends another $5.4 billion to buy 55,500 bitcoins, bringing the total holdings to 386,700 bitcoins"—this article was originally published by Blockke.
