MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 $BTC acquired for ~$9.9 billion at ~$39,266 per bitcoin. $MSTR https://t.co/JUtgztpzBu— Michael Saylor⚡️ (@saylor) September 20, 2024
The company spent approximately $458.2 million for the acquisition, with an average price of $61,750 per Bitcoin.
MicroStrategy’s Latest Bitcoin Purchase
MicroStrategy now holds 252,220 Bitcoin, having invested a total of $9.9 billion. This equates to an average cost of $39,266 per BTC.
At current prices, this makes the firm’s Bitcoin holdings worth close to $16 billion, giving them an unrealized profit of around $6 billion.
The recent purchase of 7,420 BTC further cements MicroStrategy’s position as the company with the largest Bitcoin holdings among public firms. MicroStrategy now holds more than 1% of all Bitcoin ever mined, surpassing major firms like Tesla in terms of BTC holdings.
CEO Michael Saylor has been a vocal advocate for Bitcoin, often describing it as a hedge against inflation and a superior store of value. During his tenure at MicroStrategy, the company's bitcoin investments grew exponentially, and it issued multiple debt products to finance its Bitcoin acquisitions.
Financing the Acquisition
The company’s move to issue debt to purchase Bitcoin has also been followed by other firms. Companies like Marathon Digital and Semler Scientific have issued debt to buy Bitcoin, but none have matched the scale of MicroStrategy’s investments.
However MicroStrategy increased its lead over Marathon Digital, the next largest publicly traded Bitcoin holder, by more than 226,000 Bitcoin.
Bitcoin as a Treasury Asset
MicroStrategy first ventured into Bitcoin in August 2020, establishing the cryptocurrency as a core part of its capital allocation strategy. Since then, the firm has continually increased its Bitcoin holdings, with each purchase supporting its belief in Bitcoin’s long-term value.