MicroStrategy Acquires $4.6B in Bitcoin, Setting New Corporate Purchase Record Amid All-Time Highs
In a bold move that reinforces its position as the world’s largest corporate Bitcoin holder, MicroStrategy has acquired an additional 51,780 Bitcoin (BTC) for approximately $4.6 billion, marking its largest single cryptocurrency purchase to date. The acquisition comes as Bitcoin’s value surged past $92,400, setting new historic highs.
The business intelligence firm’s latest investment, executed at an average price of $88,627 per Bitcoin between November 11 and 17, has elevated its total holdings to 331,200 BTC. This massive portfolio, accumulated at an aggregate cost of $16.5 billion, now carries a market value approaching $30 billion, representing substantial unrealized profits for the company.
To finance this unprecedented purchase, MicroStrategy leveraged its equity markets strategy, successfully selling 13.6 million shares for $4.6 billion through a consortium of financial institutions, including TD Securities, Barclays Capital, and several other prominent securities firms. The company maintains significant financial flexibility, with approximately $15.3 billion in shares still available for sale under its current agreement.
This acquisition is part of MicroStrategy’s ambitious “21/21 plan,” which aims to raise $42 billion over the next three years – split equally between equity and fixed-income securities – to continue its aggressive Bitcoin accumulation strategy. The plan underscores the company’s unwavering commitment to its Bitcoin-centric treasury strategy, first initiated in August 2020 under the leadership of founder Michael Saylor.
“I don’t think it is going to $60,000, it is not going to $30,000, I think it is going to go up from here,” Saylor stated confidently on CNBC, reflecting his optimistic outlook on Bitcoin’s future trajectory.
The company’s performance metrics highlight the success of its strategy, with its “Bitcoin Yield” – a key performance indicator measuring Bitcoin holdings growth relative to diluted shares – reaching 41.8% year-to-date. This metric demonstrates MicroStrategy’s ability to efficiently acquire Bitcoin while managing share dilution to benefit stockholders.
MicroStrategy’s continued accumulation of Bitcoin, even as prices reach unprecedented levels, has set a precedent for corporate treasury management. The company’s open-source Bitcoin reserve strategy has inspired other publicly traded companies, including Marathon Digital Holdings and Semler Scientific, to adopt similar approaches to treasury diversification.
The company’s shares have reflected investor confidence in this strategy, with MSTR stock value increasing by approximately 400% year-to-date, despite minor fluctuations following the announcement of this latest purchase.
