MicroStrategy spends another 460 million magnesium to buy Bitcoin: holdings exceed 330,000, calling for Buffett and Microsoft to join

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ABMedia
11-19
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MicroStrategy (MicroStrategy) recently made a move, spending $460 million to buy over 51,780 BTC in just one week, bringing its total holdings to over 331,200 BTC, which accounts for 1.5% of the global BTC supply. Founder Michael Saylor not only emphasized that BTC is the future of global assets, but also suggested that companies with large cash reserves like Berkshire Hathaway under Buffett and Microsoft should buy BTC to preserve capital, use it as a reserve asset, and generate higher returns.

Bought 51,780 BTC in one week, at an average price of around $88,000

According to the document, between 11/11 and 11/17, MicroStrategy bought 51,780 BTC at an average price of around $88,000 per BTC, spending a total of $460 million. MicroStrategy now holds a total of 331,200 BTC, with a total purchase cost of around $16.5 billion, at an average cost of $49,874 per BTC. MicroStrategy has become one of the listed companies with the largest BTC holdings, accounting for about 1.5% of the global BTC supply.

Common stock fundraising continues, with a cumulative issuance amount reaching $21 billion

MicroStrategy continues to raise funds through the issuance of common stock to support BTC purchases. It has currently raised $4.6 billion, and still has nearly $15.3 billion in unissued shares, mainly to provide flexibility for future purchase strategies.

BTC acquisition strategy brings impressive returns, with a yield indicator of 41.8%

According to MicroStrategy's published BTC Yield KPI, the return on its BTC investment from 1/1 to 11/17 this year reached 41.8%. This shows that MicroStrategy's strategy of using stock financing to purchase BTC has not only brought impressive returns, but also long-term value for shareholders.

Calling out Buffett and Microsoft, holding cash is not as good as buying BTC

In a recent interview, Michael Saylor specifically mentioned Berkshire Hathaway under Buffett, directly telling them that their $325 billion in cash is "becoming less and less valuable", shrinking by about $40 billion per year at a rate of 12%. Saylor further said that if Berkshire were to invest this money in BTC, it could easily earn over $60 billion in returns per year with a return of at least 21%. He also emphasized that as global capital gradually shifts towards BTC, the companies that enter the market now will be the biggest winners in the future. Not only did he mention Berkshire, Saylor also called out tech giants like Microsoft. He stated that if Microsoft were to convert a portion of its cash to BTC each quarter, it could create trillions of dollars in value for its shareholders over the next 10 years, increasing its market capitalization by hundreds of billions of dollars.

The United States needs to establish a "Bitcoin National Reserve" to lead the global economy

Saylor also called on the U.S. government to establish a "Bitcoin National Reserve" like the gold reserve, and purchase at least 1 million bitcoins, accounting for 5% of the global supply. Saylor believes that this not only can attract global capital to flow to the United States, but also ensure that the United States can dominate the global digital economy era. He further stated: "If the United States buys 20% of bitcoins now, the future returns will be equivalent to buying Manhattan Island that year."

The scarcity of BTC is obvious, and institutions have started to position themselves

Currently, the total global supply of BTC is only 21 million, of which about 18% have been locked up by institutions such as MicroStrategy and BlackRock. Saylor believes that as most BTC are held for the long term, its scarcity will cause the price to rise continuously, and an unprecedented asset revolution is about to come.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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