TL;DR
- MicroStrategy acquired 27,200 bitcoins for $2.03 billion, bringing the total to 279,420 BTC.
- The purchase was made at an average price of $74,463 per bitcoin, with a bitcoin yield of 26.4% in 2024.
- The acquisition was partially financed through the issuance of shares under at-the-market agreements .
MicroStrategy, known for being one of the largest companies in terms of bitcoin holdings, has updated its cryptocurrency acquisition strategy, announcing a significant purchase between October 31 and November 10, 2024.
During that period, the company acquired 27,200 bitcoins, spending a total of approximately $2.03 billion, resulting in an average price per bitcoin of $74,463.
With this new acquisition, MicroStrategy brings its total bitcoin reserve to 279,420 BTC, with a total acquisition cost of around $11.9 billion.
This information was reported on November 10, 2024.
The company has been strategic in how it finances these purchases. Using at-the-market (ATM) sales agreements, MicroStrategy sold shares of its Class A stock to raise the necessary funds. The net proceeds from these transactions amount to approximately $2.03 billion, which was used to purchase the 27,200 bitcoins.
These deals have allowed MicroStrategy to continue to expand its exposure to bitcoin, even while it remains in an environment of economic volatility. Buying has become a key part of its business model, positioning the company as one of the largest corporate holders of bitcoin in the world.
The company also reported a remarkable bitcoin yield, known as BTC Yield, of 26.4% over 2024 through November 10. This yield is measured by the change in the ratio of bitcoins held by the company to its diluted shares. Compared to other assets, this yield reflects the success of MicroStrategy’s strategy of accumulating bitcoin as part of its long-term approach.
The acquisition is not only designed as an investment, but also as a way to provide economic exposure to bitcoin for its shareholders. MicroStrategy has noted that its focus remains long-term, aiming to maintain and grow its bitcoin holdings while seeking to maximize shareholder value.
MicroStrategy’s long-term strategy
MicroStrategy has been a strong proponent of bitcoin since it began acquiring the cryptocurrency in 2020.
The company continues to expand its strategy, seeking constant exposure to the digital asset as a way to obtain value, especially in an uncertain economic environment.
This decision has also had an impact on the market, as it has influenced how other companies and investment funds consider bitcoin within their portfolios.
In addition to being an investment strategy, acquiring bitcoins is also a testament to the vision of Michael Saylor, CEO of MicroStrategy, who has noted that the digital currency has the potential to act as a safe haven, similar to gold, but with the advantage of being digitally accessible and easier to store and transfer.
As other large technology companies and investment funds begin to follow this trend, MicroStrategy continues to position itself as a leader in the adoption of bitcoin in the corporate sector.
The acquisition also strengthens MicroStrategy’s position in the business intelligence industry, where it specializes in providing data analytics solutions for companies of all sizes. Through its bitcoin activities, the company combines its technological capabilities with its financial strategy, creating a synergy that has attracted the attention of investors and analysts alike.
Although some analysts have expressed concerns about bitcoin‘s volatility, the cryptocurrency’s positive performance so far has validated the company’s strategy.
MicroStrategy continues to push ahead with its aggressive acquisition of bitcoin, cementing its position as one of the largest corporate holders of the cryptocurrency. With an impressive year-to-date performance and a solid financial strategy, the company is demonstrating that its commitment to bitcoin remains a key part of its long-term vision.
