David Edwards
MicroStrategy, the largest publicly traded corporate holder of Bitcoin, has significantly increased its holdings, purchasing 51,780 BTC for approximately $4.6 billion. The acquisition occurred as Bitcoin’s price surged to historic levels.
Record-Breaking Purchase
Announced on November 18, the purchase was made at an average price of $88,627 per Bitcoin, reflecting MicroStrategy’s continued confidence in the cryptocurrency despite its escalating valuation. The company’s total Bitcoin holdings now stand at 331,200 BTC, acquired for a cumulative $16.5 billion at an average cost of $49,874 per BTC.
Share Sale Fuels Acquisition
MicroStrategy funded the acquisition with proceeds from a share sale finalized under a sales agreement with TD Securities on October 30. Between November 11 and 13, the company sold 13.6 million shares, raising $4.6 billion.
A recent SEC filing revealed that as of November 17, MicroStrategy still had $15.3 billion in shares available for sale under the agreement, positioning the company for potential future investments.
Bitcoin Hits New Highs
The purchase coincided with Bitcoin’s unprecedented price movements. On November 12, Bitcoin surpassed $90,000 for the first time, climbing further to $92,400 the following day. The acquisition underscores MicroStrategy’s aggressive strategy of capitalizing on Bitcoin’s long-term growth potential.
Implications for the Market
MicroStrategy’s substantial investment reflects its steadfast commitment to Bitcoin as a store of value, further reinforcing institutional interest in the cryptocurrency. With this latest move, the company strengthens its position as a leader in corporate Bitcoin adoption, potentially encouraging other institutions to follow suit.
