- MicroStrategy acquires 55,500 BTC for $5.4 billion, the largest single Bitcoin purchase ever.
- The firm now holds 386,700 BTC, valued at over $37 billion at current prices.
- Funded by $3B in debt and $2.46B in equity, MicroStrategy plans more purchases.
- The company’s unique Bitcoin Yield metric reflects a 59.3% year-to-date growth.
MicroStrategy, known for its unwavering commitment to Bitcoin, has once again made headlines with a historic $5.4 billion purchase of 55,500 BTC. This massive acquisition, completed between November 18 and 24, represents the largest single Bitcoin buy ever by the company, further cementing its status as the leading corporate Bitcoin holder.
Breaking Records with Bold Investments
According to an SEC filing, MicroStrategy paid an average of $97,862 per Bitcoin for this latest batch. The acquisition pushes the firm’s total holdings to 386,700 BTC, valued at over $37 billion at current market prices. To date, MicroStrategy has spent $21.9 billion building its Bitcoin reserve, with an average purchase price of $56,761 per Bitcoin, including fees.
https://twitter.com/FinanceLancelot/status/1861146224860004727
This move is part of a calculated strategy to accumulate Bitcoin as a core treasury asset. CEO Michael Saylor has consistently expressed his belief in Bitcoin’s long-term potential, describing it as “the world’s most secure monetary network.”
How They Funded the $5.4 Billion Buy
To finance this record-breaking purchase, MicroStrategy raised $3 billion through a debt offering, generating nearly $3 billion in net proceeds. Additionally, the company sold over 5.5 million shares of its stock, raising $2.46 billion.
https://twitter.com/BTC_Archive/status/1860723804634337332
But MicroStrategy isn’t stopping here. The firm has ambitious plans to raise $42 billion over the next three years through a combination of equity offerings and fixed-income securities to continue expanding its Bitcoin holdings.
Measuring Success: The Bitcoin Yield Metric
https://twitter.com/ecoinometrics/status/1861074016934764609
A unique aspect of MicroStrategy’s strategy is its proprietary “Bitcoin Yield” metric, which measures the percentage growth in Bitcoin holdings relative to share dilution. As of November 24, MicroStrategy’s year-to-date Bitcoin Yield stands at an impressive 59.3%. This metric reflects the company’s ability to expand its Bitcoin reserves significantly while maintaining shareholder confidence.
A Relentless Buying Spree
MicroStrategy’s aggressive accumulation has been a defining characteristic of its strategy. The latest purchase follows closely on the heels of other major buys: 51,780 BTC for $4.6 billion last week and $2 billion worth of Bitcoin just the week before.
By doubling down on its belief in Bitcoin’s long-term value, MicroStrategy has set the bar for corporate adoption of cryptocurrency. The firm’s unwavering focus has made it the largest corporate Bitcoin holder in the world, a bold position that speaks to its confidence in the future of digital assets.
With plans for continued acquisitions and a proven track record of innovative financing strategies, MicroStrategy is not just betting on Bitcoin — it’s rewriting the playbook for how corporations approach cryptocurrency.