MicroStrategy is beefing up its Bitcoin (BTC) holdings. On November 11, the company announced a major purchase of the cryptocurrency, adding 27,200 BTC to its holdings with approximately $2.03 billion in cash.
According to the company, the coins were purchased between October 31 and November 10, at an average price of $74,463 per BTC, including fees and expenses.
The company remains the largest institutional holder of Bitcoin, followed only by major mining companies. According to the “Saylor Tracker,” named after founder and chairman Michael Saylor, MicroStrategy currently holds 279,420 BTC, worth $24.9 billion at a time when the coin’s value hovers around $89,000.
Over multiple purchases over recent years, the average dollar-cost investment value of each coin is estimated to be $42,888.13.
MicroStrategy's BTC portfolio as of November 14. Source: Saylor Tracker
MicroStrategy has issued debt to fund its Bitcoin strategy. According to recently disclosed plans, the company plans to raise $42 billion over the next three years to accumulate more BTC. The company's stock — seen as a way to gain exposure to BTC — is up 418% in 2024 as of November 14.
Despite its stock rally and growing bets on Bitcoin, the company has fallen short of analysts’ expectations. On October 31, the company reported revenue of $116.1 million, down 10.3% from 2023 and about 5.22% below market expectations.
This week's Crypto Biz also features news on Coinbase and Kaiko's recent acquisitions, MARA's third-quarter results, and MoonPay's new fiat payment gateway.
Coinbase Launches COIN50 Index to Track Digital Assets
Cryptocurrency exchange Coinbase has introduced a new benchmark to track more than 50 digital assets. According to the company, its Coinbase 50 Index (COIN50) provides a snapshot of crypto market trends, with six cryptocurrencies accounting for 91% of the index’s weight: Bitcoin, Ether (ETH), Solana (SOL), Dogecoin (DOGE), XRP (XRP), and Cardano (ADA). With this move, Coinbase is primarily targeting emerging markets and crypto-friendly regions, as derivatives products tied to the index exclude major markets such as the United States, United Kingdom, and Canada. In a separate announcement, the exchange announced the acquisition of Utopia Labs to build out its onchain payments infrastructure.
Kaiko Acquires Vinter to Strengthen Position in Crypto Index and Analytics
Crypto analytics firm Kaiko has acquired Vinter, a regulated European crypto index provider, expanding its presence in the exchange-traded product (ETP) space across Europe. The ETP industry in Germany, Sweden, and Switzerland currently has approximately $13.64 billion in assets under management. Vinter, which is registered with the European Securities and Markets Authority, manages benchmarks for ETPs on exchanges such as SIX, Nasdaq, Euronext, and Deutsche Boerse Xetra. This is Kaiko’s third acquisition. In 2022, the company bought Kesitys, a risk optimization tool provider, and then acquired Napoleon Index from CoinShares.
MARA Holdings drops 9% after hours as third-quarter revenue misses expectations
Bitcoin mining company MARA Holdings, formerly Marathon Digital, fell 9.1% in after-hours trading as its third-quarter earnings results missed analysts’ revenue estimates. MARA’s third-quarter earnings, released on November 12, showed a loss of $0.34 per share, slightly above Wall Street analysts’ estimates, and while revenue rose 34.5% year-over-year to $131.6 million, it still missed expectations of $148.1 million. The mining company saw a $40 million increase in quarterly operating expenses, contributing to a net loss of $124.8 million in the third quarter.
MoonPay Enhances Self-Custodial Crypto Spending with New Solution
MoonPay has introduced MoonPay Balance, a new payment tool that allows users to store and spend fiat balances in euros and pounds on MoonPay and use them as an entry point to interact with DeFi. The new solution allows users to spend their balances through MoonPay’s direct integration with non-custodial or self-custodial wallets such as MetaMask, Phantom, and Bitcoin.com wallet. At launch, MoonPay Balance will be available in the UK and most European countries, excluding Germany.
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