MicroStrategy purchases over 5 billion dollars in Bitcoin
Business intelligence firm MicroStrategy has purchased an additional 55,500 Bitcoin (BTC) for about $5.4 billion between November 18 and November 24 at an average price of $97,862 per Bitcoin, according to a press release on Monday.
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM
— Michael Saylor⚡️ (@saylor) November 25, 2024
MicroStrategy's largest Bitcoin acquisition
This latest acquisition is the company's biggest acquisition to date. It comes after a $3 billion debt offering was completed on November 21 with $2.97 billion in net proceeds, and 5,597,849 more MicroStrategy shares were sold between November 18 and November 24 for about $2.46 billion.
The company said that as of November 24, about $12.8 billion worth of shares were still up for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities. Over the next three years, the company hopes to raise a total of $42 billion in capital for additional Bitcoin acquisitions.
Michael Saylor MicroStrategy Bitcoin buying spree
The news last Monday that MicroStrategy had purchased about 51,780 BTC for about $4.6 billion in cash at an average estimated price of $88,627 per coin, including fees and expenses, and $2 billion worth of Bitcoin the week before, accompanied this week's announcement for the third consecutive week.
MicroStrategy Bitcoin holdings
Corporate Bitcoin holder MicroStrategy currently owns 386,700 BTC, which is worth more than $37 billion. MicroStrategy's co-founder and executive chairman, Michael Saylor, stated that the company's entire holdings were purchased at an average price of $56,761 per Bitcoin, which amounted to approximately $21.9 billion, including fees and expenses.
MicroStrategy measures the percentage change in its Bitcoin holdings in relation to its diluted shares using a key performance indicator it calls "Bitcoin Yield." In light of the company's strategy of effectively acquiring Bitcoin to benefit shareholders, the firm's year-to-date Bitcoin Yield as of November 24 is 59.3%, reflecting a notable increase in holdings while balancing share dilution.
MicroStrategy to hold 4% of Bitcoin circulating supply over the next 10 years
Analysts at research and brokerage firm Bernstein updated their price target for MSTR to $600 by the end of 2025, predicting that MicroStrategy's ownership of Bitcoin will increase from 1.7% of the circulating supply to 4% over the next ten years.
According to TradingView, Bernstein had previously set a target of $290 in June, when the stock was trading at about $148. The price was reached on November 11 amid a nearly 100% increase over the previous month and a 509% year-to-date increase. The new target, according to MicroStrategy, represents a 42% upside potential from here.
Other companies have been prompted to act by Saylor's successful Bitcoin move. In an attempt to profit from the asset's explosive rise, companies such as Metaplanet, Semler Scientific, and Genius Group unveiled their own Bitcoin treasuries. One hour after Saylor's publication of MicroStrategy's addition, Eric Semler, the founder of Semler Scientific, revealed $29.1 million worth of Bitcoin purchases. Additionally, both companies have yields of more than 50% so far this year from holding the largest cryptocurrency in the world.
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