MicroStrategy, a big name in business intelligence, made a huge move by buying 55,500 more bitcoins for about $5.4 billion. They paid an average of $97,862 for each bitcoin. This major purchase is part of the company’s strategy to invest heavily in cryptocurrency, and it came right after they raised $3 billion through a debt offering and sold shares worth $2.46 billion.
The company announced this latest bitcoin purchase in a recent filing with the Securities and Exchange Commission. From November 18 to November 24, MicroStrategy bought these bitcoins, marking their biggest buy yet. They finished the $3 billion debt deal on November 21, which brought in $2.97 billion after costs. They also sold 5,597,849 of their own shares during the same period, bringing in about $2.46 billion.
Now, MicroStrategy holds a whopping 386,700 bitcoins, valued at over $37 billion. Michael Saylor, the co-founder and executive chairman of the company, says they bought all these bitcoins at an average price of $56,761 each, spending about $21.9 billion including all fees.
MicroStrategy isn’t stopping here. They plan to raise $42 billion in the next three years by selling more shares and fixed-income securities. This money will help them buy even more bitcoins. As of now, the firm still has about $12.8 billion worth of shares they can sell for this plan.
Their strategy seems to be working well. They use something called “Bitcoin Yield” to track how much their bitcoin value has gone up compared to their shares. As of the latest update, their Bitcoin Yield for the year is 59.3%. This shows they’re growing their bitcoin stash effectively without losing too much value in their shares.
Recently, analysts from Bernstein, a research firm, said they think MicroStrategy could end up owning 4% of all bitcoins in circulation over the next ten years. That would mean holding about 830,000 bitcoins, which could be worth $830 billion if bitcoin reaches $1 million each by 2033.
So, MicroStrategy is clearly betting big on bitcoin, hoping it will pay off in the long run. They’re not just buying bitcoins; they’re planning carefully to grow their investment and benefit their shareholders. This approach shows they believe strongly in the future of bitcoin.
