MicroStrategy, the business intelligence firm turned bitcoin giant, has announced yet another significant bitcoin purchase, further cementing its status as the largest corporate holder of the scarce digital asset in the world.
The company, led by Bitcoin advocate Michael Saylor, recently acquired 18,300 BTC for $1.1 billion, bringing its total bitcoin stash to an impressive 244,800 BTC.
The latest MicroStrategy bitcoin purchase was made between August 6 and September 12, 2024, at an average price of $60,408 per bitcoin. This purchase brings MicroStrategy’s total investment in bitcoin to around $9.45 billion, with an average purchase price of $38,585 per BTC.
As of now, the total value of MicroStrategy bitcoin holdings is estimated at $14.68 billion, given the current bitcoin price of around $60,000.
Michael Saylor, MicroStrategy’s executive chairman, proudly shared the news on social media.
MicroStrategy began its bitcoin accumulation strategy back in August 2020, driven by Saylor’s belief that bitcoin is a reliable store of value and a hedge against inflation and economic uncertainty.
Since then, the company has consistently purchased more bitcoin, becoming a major player in the bitcoin market.
Related: Michael Saylor Says Bitcoin is a Shield Against Inflation
The firm has often funded its purchases through various means, including cash reserves and debt issuance.
For instance, the latest purchase was partly financed through a $750 million bond issuance, demonstrating MicroStrategy’s commitment to leveraging both existing assets and external financing to expand its bitcoin holdings.
Saylor, who stepped down as CEO a few years ago to “focus on the company’s Bitcoin strategy”, has been an outspoken advocate for Bitcoin.
He has repeatedly emphasized his commitment to “buy bitcoin forever” and has projected ambitious price targets, with predictions of bitcoin reaching as high as $13 million per coin in the future.
MicroStrategy’s aggressive bitcoin purchases have generated mixed reactions from analysts and the market.
On the one hand, some praise the company for its forward-thinking approach and for driving institutional acceptance of bitcoin as a legitimate financial asset. On the other hand, critics caution about the risks associated with such a concentrated exposure to a highly volatile asset.
Following the announcement of the latest purchase, bitcoin’s price saw a slight dip, reflecting some market uncertainty, before rebounding and even surpassing the $60,000 levels, a price last seen 3 weeks ago.
The initial negative reaction suggests that while some investors remain skeptical about the impact of large-scale corporate purchases on bitcoin’s short-term price, MicroStrategy remains undeterred.
MicroStrategy’s accumulation strategy has undoubtedly positioned it as a dominant force in the bitcoin market.
According to data from BitcoinTreasuries, the firm is the largest public holder of bitcoin, controlling approximately 1.16% of the total bitcoin supply of 21 million coins. This makes it the biggest corporate investor in bitcoin worldwide.
The company’s holdings have also appreciated significantly since it began its bitcoin buying spree.
As of September 12, 2024, MicroStrategy’s investment has appreciated by approximately 56%, resulting in an unrealized gain of nearly $5 billion. Despite the market fluctuations, the firm’s faith in bitcoin’s long-term growth potential remains strong.
Looking ahead, MicroStrategy is expected to continue its aggressive bitcoin accumulation strategy.
The company’s consistent purchases over the past four years indicate a long-term belief in bitcoin’s potential to serve as a store of value, a view that has only strengthened despite market volatility.
Michael Saylor remains bullish on bitcoin’s future, as reflected in his statements.
He noted in a recent interview that he believes bitcoin is a better asset than cash and has chosen to use it as the main reserve for their treasury. This strategy, he argues, provides a hedge against inflation and a way to increase shareholder value over time.
MicroStrategy’s ongoing commitment to Bitcoin reflects a bold bet on a digital future. While its strategy has been both praised for its innovation and criticized for its risk, the company shows no signs of slowing down.
As one of the top-performing stocks among the S&P 500 with a 91% increase year-to-date, MicroStrategy’s Bitcoin-focused approach has already delivered substantial returns.
While Bitcoin experiences short-term volatility, its strong long-term outlook reinforces the credibility of MicroStrategy’s Bitcoin intiative.
If the past few years are any indication, Michael Saylor and his team are prepared to navigate the highs and lows with confidence, betting on bitcoin’s long-term potential.
Whether this strategy will pay off in the long term remains to be seen, but for now, MicroStrategy’s massive bitcoin bet continues to make waves in the world of finance.
