MicroStrategy now holds 244,800 bitcoins after the recent $1.11 billion acquisition.
Saylor’s MicroStrategy raised $2 billion to expand its Bitcoin holdings in August 2024.
El Salvador’s Bitcoin investments now yield an unrealized profit of $84 million.
MicroStrategy has increased its Bitcoin holdings again with 18,300 bitcoins for $1.11 billion. The new development brings its total Bitcoin holdings to around 244,800 bitcoins. MicroStrategy spent a total of $9.45 billion on these acquisitions. The official documents reveal that the purchase was funded through a stock sale agreement with several financial entities.
MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U
— Michael Saylor
(@saylor) September 13, 2024
Formerly a business software firm but now calling itself a bitcoin development company, MicroStrategy continues to show confidence in Bitcoin despite the market’s volatility. The company now stands as a major institutional player in the crypto space.
MicroStrategy’s Bitcoin Engagements
In June 2024, MicroStrategy announced a $800 million note offering with the purpose of buying more Bitcoin and supporting other business needs. The convertible notes will mature by 2032 and are meant for institutional buyers. Executive Chairman Michael Saylor announced plans to redeem $650 million of 2025 convertible notes. His vision emphasizes MicroStrategy to increase its Bitcoin reserves.
On August 2, 2024, MicroStrategy announced another major move. The company stated it would raise $2 billion to expand its Bitcoin holdings. Despite facing a $102.6 million loss in Q2, MicroStrategy held 226,500 bitcoins. These bitcoins were worth $14.4 billion at the time. The company had also undergone a 10-for-1 stock split to improve stock accessibility.
Strategic Implications and Market Perception
MicroStrategy started purchasing bitcoin in 2020 and has added to its holdings since. BitcoinTreasuries data shows that it is the biggest holder of the asset among all publicly-listed companies in the world.
On a global scale, El Salvador has also seen significant gains in its Bitcoin investments. The country’s Bitcoin treasury now holds an unrealized profit of $84 million. President Nayib Bukele revealed that Bitcoin’s value has risen by 250% in the last year. El Salvador holds 2,681 bitcoins, acquired at an average price of $42,600 through 12 purchases.
Additionally, El Salvador is generating extra revenue through various Bitcoin-linked services. This includes a citizenship program, Bitcoin-to-USD conversions for local businesses, and Bitcoin mining. The nation’s Freedom VISA, introduced in December, grants residency to those investing at least $1 million in Bitcoin or stablecoins. These initiatives have solidified El Salvador’s position as a leader in Bitcoin adoption.
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