MicroStrategy, the business intelligence company represented by its CEO Michael Saylor, recently expanded its Bitcoin (BTC) holdings again, purchasing 21,550 BTC worth approximately $2.1 billion.
This action is the latest example of MicroStrategy's ongoing investment in Bitcoin since 2020, marking its firm stance in the cryptocurrency space.
Investment background and strategy
Since 2020, MicroStrategy has begun allocating capital to Bitcoin with the goal of 'maximizing long-term shareholder value.' Over time, the company has not only reshaped its business model to become a Bitcoin development company but has also pioneered a cryptocurrency reserve asset model that other businesses have begun to emulate.
As of now, MicroStrategy has accumulated over 423,650 BTC, becoming the world's largest corporate Bitcoin reserve holder, with total assets valued at over $40 billion.
MicroStrategy's top five Bitcoin purchase records
Below is a review of MicroStrategy's top five Bitcoin purchases in history and the immediate impact of these purchases on Bitcoin prices:
29,646 BTC — December 21, 2020
Average price: $21,925
Total expenditure: $650 million
This is MicroStrategy's second-largest Bitcoin purchase; despite the market's tepid response, it still holds significant importance in the context of the prevailing bull market at the time.
2. 51,780 BTC — November 18, 2024
Average price: $88,627
Total expenditure: $4.6 billion
This purchase occurred a week before its largest purchase; although the Bitcoin price briefly dropped after the announcement, it quickly rebounded, reaching a daily high of $92,653.
3. 27,200 BTC — November 11, 2024
Average price: $74,463
Total expenditure: $2.03 billion
After the results of the U.S. presidential election were announced, MicroStrategy announced this purchase, and subsequently, Bitcoin prices surged significantly to reach new highs.
4. 55,500 BTC — November 25, 2024
Average price: $97,862
Total expenditure: $5.4 billion
This is MicroStrategy's largest transaction to date, although Bitcoin prices fell about 4% after the announcement.
5. 21,550 BTC — December 9, 2024
Average price: $98,783
Total expenditure: $2.1 billion
This is MicroStrategy's highest average price purchase in history; despite the market's lukewarm response, the Bitcoin price fell more than 2.5% after the announcement.