MicroStrategy, a software intelligence powerhouse turned corporate Bitcoin titan, has once again made headlines with its audacious investment strategy. Between November 25 and December 1, the company acquired an additional 15,400 BTC. This Bitcoin acquisition was purchased at an average price of $95,976 per coin, totaling a staggering $1.5 billion.
This latest purchase underscores MicroStrategy’s unyielding commitment to Bitcoin as its central asset strategy. This development was detailed in an 8-K filing with the Securities and Exchange Commission earlier today.
MicroStrategy Bet Big on Bitcoin with Bold Equity Moves
This latest acquisition coincides with the sale of 3,728,507 MicroStrategy shares, raising $1.5 billion in the same timeframe. These transactions form part of the company’s ambitious plan to sell up to $21 billion in equity and an equal amount in fixed-income securities. Together, these moves aim to secure $42 billion over the next three years, mainly for buying more Bitcoin.
Despite its aggressive share issuance, MicroStrategy revealed that approximately $11.3 billion in equity is still available for sale. This dual strategy of share dilution and strategic accumulation reflects the firm’s confidence in Bitcoin’s long-term value.
MicroStrategy’s Reserve: A Mammoth Treasury of Digital Gold
As of December 1, MicroStrategy’s Bitcoin holdings stand at an impressive 402,100 BTC, valued at over $38 billion. The company’s cumulative acquisition cost, including fees and expenses, sits at about $23.4 billion. This translates to an average price of $58,263 per Bitcoin. This positions MicroStrategy as the largest corporate Bitcoin holder globally, far surpassing other listed public companies.
This latest purchase is part of a relentless acquisition streak. Over the past month, the company made headlines with a record-breaking purchase of 55,500 BTC for $5.4 billion. Following the acquisition of $4.6 billion worth of Bitcoin the prior week. These purchases reflect an aggressive scaling strategy that few companies could rival.
To gauge its performance and justify its strategy to shareholders, MicroStrategy employs a proprietary metric called Bitcoin Yield.This measures the percentage change in Bitcoin holdings relative to the company’s diluted shares.
As of December 1, MicroStrategy reported a year-to-date Bitcoin Yield of 63.3%. This showcases its ability to balance the dilution impact of share sales with robust growth in its Bitcoin reserves.
Saylor’s Pushes for Widespread Bitcoin Adoption
Michael Saylor, MicroStrategy’s co-founder and executive chairman, has not confined his Bitcoin advocacy to his own company.
Saylor urged Microsoft’s CEO, Satya Nadella, and its board to adopt Bitcoin as a treasury asset. He boldly predicted that doing so could drive the company’s assets to skyrocket to $5 trillion.
Recently, he made a bold call for 60 public companies to issue equity to buy Bitcoin. Saylor’s bold stance highlights his belief in Bitcoin as a revolutionary financial tool. He sees it as unmatched in preserving value and driving growth.
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