MicroStrategy Inc. has announced that it has purchased 27,200 BTC for approximately $2.03 billion. This is the largest Bitcoin (BTC) purchase made by the company over the past 4 years.
The purchase was made between October 31 and November 10 at an average price of $74,463 per BTC, including fees.
MicroStrategy's Bitcoin Assets Now Exceed $23 Billion
Following this purchase, Bitcoin reached a new all-time high of $84,000. At the current market price, MicroStrategy holds 279,420 BTC worth approximately $23 billion.
Michael Saylor, the company's co-founder and chairman, first invested in Bitcoin in 2020 as a hedge against inflation. Initially, he used cash, but later adopted a strategy of using stock issuances and convertible bonds to increase his purchasing power.
This investment approach has significantly improved MicroStrategy's market performance alongside the rise in Bitcoin's value.
"As Saylor has been stacking new Bitcoins, Bitcoin naysayers like Jim Cramer and Peter Schiff have claimed that Bitcoin will go to zero. They have criticized Bitcoin and MicroStrategy's strategy, but they have done so every time BTC has hit new all-time highs. Saylor has not panic sold. Now he is sitting on billions in profits," wrote influencer Ash Crypto in a recent tweet.
Since mid-2020, the company's stock has surged over 2,300%, outpacing major U.S. stocks, including Nvidia. During the same period, the value of Bitcoin has increased by around 630%.
According to data from the "Saylor Tracker", as of November 10, MicroStrategy's BTC yield exceeded 100%. Even before the recent purchase, the company's holdings were already valued at over $20.5 billion.
According to BitcoinTreasuries, MicroStrategy has purchased Bitcoin 42 times at an average cost of $39,292. The company remains the largest corporate holder of Bitcoin, followed by Marathon Digital and Riot Platforms, valued at $2.1 billion and $840 million, respectively.
The company's consistent BTC accumulation strategy has also attracted institutional investors. In October, BlackRock, the largest Bitcoin ETF issuer, increased its stake in MicroStrategy to 5.2%.
In its Q3 earnings report, MicroStrategy announced plans to raise $420 million in capital over the next 3 years to fund additional Bitcoin purchases. At current prices, the company's BTC investment has already yielded a return on investment (ROI) of over 100%.
