MicroStrategy Inc. has made headlines with its latest Bitcoin acquisition - purchasing approximately 27,200 BTC for about $2.03 billion. This marks the company's largest single Bitcoin purchase since it began investing in digital assets four years ago.
Strategic Bitcoin Investment
Between October 31 and November 10, 2023, the enterprise software manufacturer significantly expanded its cryptocurrency holdings. This substantial purchase follows the company's December 2020 acquisition of 29,646 Bitcoin, demonstrating MicroStrategy's continued commitment to cryptocurrency as part of its corporate strategy.
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The company's Bitcoin investment strategy originated with co-founder and Chairman Michael Saylor's 2020 decision to use cryptocurrency as an inflation hedge. Initially funding purchases with cash reserves, MicroStrategy later shifted to leveraging stock issuances and convertible debt sales to maximize its buying power.
Outstanding Performance Metrics
Since mid-2020, MicroStrategy's Bitcoin-focused approach has delivered remarkable results:
- Company stock surged over 2,500% since August 2020
- Outperformed all major U.S. stocks including AI leader Nvidia
- Bitcoin itself appreciated approximately 660% during the same period
At Bitcoin's recent peak above $86,500, MicroStrategy's holdings reached an estimated $24 billion in value. The company maintains its position as the largest publicly-traded corporate Bitcoin holder outside of BlackRock's U.S. exchange-traded fund.
Current Holdings Breakdown
As of November 10, 2023, MicroStrategy and its subsidiaries held:
- Approximately 279,420 Bitcoin
- Total purchase price: ~$11.9 billion
- Average cost per Bitcoin: ~$42,692 (including fees and expenses)
The market responded enthusiastically to this latest acquisition, with MicroStrategy shares jumping 24% to a record $335 - surpassing even its dot-com bubble peak from March 2000.
Frequently Asked Questions
Why does MicroStrategy invest so heavily in Bitcoin?
MicroStrategy views Bitcoin as both a long-term store of value and an effective hedge against inflation. The company's leadership believes cryptocurrency represents a fundamental shift in global finance.
How does MicroStrategy fund its Bitcoin purchases?
The company uses a combination of cash reserves, stock offerings, and convertible debt sales to finance its cryptocurrency acquisitions while maintaining operational liquidity.
What percentage of MicroStrategy's value comes from Bitcoin?
At current valuations, MicroStrategy's Bitcoin holdings represent a significant portion of the company's total market capitalization, though the exact percentage fluctuates with Bitcoin's price volatility.
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Has MicroStrategy ever sold its Bitcoin holdings?
To date, MicroStrategy has maintained its Bitcoin position without significant sales, demonstrating confidence in long-term cryptocurrency appreciation.
How does MicroStrategy's Bitcoin strategy compare to other companies?
MicroStrategy remains unique among public companies for both the scale of its Bitcoin investments and the explicit integration of cryptocurrency acquisition into its corporate strategy.