MicroStrategy purchases additional Bitcoin worth 2 billion dollars
Business intelligence firm turned Bitcoin investor, MicroStrategy, paid about $2.03 billion in cash for about 27,200 bitcoin, which is estimated to be worth $74,463 per coin, including fees and expenses.
The company is still the largest corporate Bitcoin holder, with Marathon Digital and Riot platforms coming in second and third. The two businesses own roughly $2.1 billion and $840 million worth of Bitcoin, respectively.
MicroStrategy buys more Bitcoin by selling shares
According to a press release, the Bitcoin purchases were made between October 31, 2024, and November 10, 2024, using the funds raised from the issuance and sale of shares.
On August 1 and October 30, MicroStrategy announced that it had signed sales contracts with a number of companies. It had sold about 7.8 million shares for about $2 billion as of November 10. Additionally, the business revealed that from October 1 to November 10, its Bitcoin yield, a key performance indicator used to evaluate its acquisition strategy, was 7.3%. Its Bitcoin yield is 26.4% for the year so far.
With fees and expenses included, MicroStrategy and its subsidiaries owned about 279,420 bitcoin, which they had purchased for an approximate total of $11.9 billion. This amounts to an average purchase price of $42,692 per coin.
Following the company's quarterly sales of $116 million, which fell about 5% short of the consensus estimate of $122.66 million, and its year-to-date yield of 17.8% on October 30, 2024, MicroStrategy made its most recent acquisition. Additionally, it revealed plans to raise $42 billion over the next several years for bitcoin acquisitions.
The Bitcoin ROI from MicroStrategy exceeds 100%
MicroStrategy has doubled down, indicating a strong commitment to Bitcoin, while other investors avoid purchasing it when it hits new highs.
On November 10, the MicroStrategy Bitcoin portfolio tracker, named "Saylor Tracker" after Michael Saylor, the company's executive chairman, revealed that the company's return on investments in BTC had surpassed 100%. Even before including the company's most recent Bitcoin acquisition, the data tracker indicated that its holdings at the time had already surpassed $20.5 billion.
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