MicroStrategy Makes $2B Bitcoin Investment, Its Biggest Since 2020
MicroStrategy has made a $2 billion Bitcoin purchase, its largest since 2020, boosting its holdings as part of a long-term inflation hedge strategy.
MicroStrategy Inc. recently made its largest Bitcoin (BTC) purchase since 2020, acquiring around 27,200 Bitcoin for approximately $2.03 billion. This major acquisition, completed between Oct. 31 and Nov. 10, represents the most substantial buy since the company began heavily investing in cryptocurrency over four years ago. Led by co-founder and chairman Michael Saylor, MicroStrategy's Bitcoin-focused strategy now brings its total holdings to an impressive $24 billion, calculated at Bitcoin's recent record price of over $86,500.
Michael Saylor initially incorporated Bitcoin into MicroStrategy’s investment approach in 2020, citing it as a hedge against inflation. Initially, the company relied on cash reserves for its Bitcoin acquisitions but soon shifted to other financial tools, including proceeds from stock sales and convertible debt. These moves increased MicroStrategy’s purchasing power, allowing it to take full advantage of Bitcoin's rising value. This strategy has proven exceptionally lucrative for the company, enabling it to outperform major U.S. stocks like Nvidia since mid-2020. In the same period, MicroStrategy’s stock surged by over 2,500%, outpacing even Bitcoin's remarkable 660% growth. The company's stock recently soared by up to 24%, reaching a record $335, following the announcement of this new Bitcoin purchase.
As of Nov. 10, MicroStrategy and its subsidiaries, headquartered in Tysons Corner, Virginia, collectively hold about 279,420 Bitcoin, acquired at a total cost of roughly $11.9 billion. The average price per Bitcoin for these purchases, including fees and expenses, sits at approximately $42,692. This substantial Bitcoin reserve has solidified MicroStrategy’s reputation in the financial and cryptocurrency markets, as it continues to hold more Bitcoin than any other publicly traded company, excluding BlackRock’s U.S. exchange-traded fund.
By maintaining such a large Bitcoin position, MicroStrategy has positioned itself as a pioneer in corporate cryptocurrency investment. This unique strategy, driven by Saylor’s belief in Bitcoin as a reliable store of value, has set the company apart from other U.S. firms. Saylor’s commitment to Bitcoin has remained steadfast, with MicroStrategy using various financial tools to expand its holdings. The decision to embrace convertible debt and stock issuance has amplified the company's influence in the cryptocurrency market, leveraging traditional financial methods to acquire digital assets on a significant scale.
This latest purchase reaffirms MicroStrategy’s role as a leader among corporate Bitcoin holders and highlights the growing trend of companies embracing digital assets as part of their long-term strategies. With Bitcoin’s recent price rise and increased acceptance as a digital store of value, MicroStrategy’s significant stake reflects a broader shift in corporate finance, as companies begin to view cryptocurrency as a strategic asset. MicroStrategy’s growing Bitcoin holdings underscore the firm’s commitment to digital currency, positioning it as a critical player in the evolving cryptocurrency landscape.
MicroStrategy’s bold approach demonstrates how companies can diversify their holdings with digital assets. As Bitcoin becomes increasingly mainstream, the company's large-scale investments may encourage other corporations to explore similar strategies, further cementing cryptocurrency’s role in the financial markets. This strategic shift by MicroStrategy exemplifies the potential for digital assets to provide companies with both growth opportunities and resilience against inflation.
