MicroStrategy Buys More Bitcoin Reaching $6.6 Billion in Holdings

• MicroStrategy, a software company and the largest corporate holder of Bitcoin bought 16,130 BTC for $593.3 million in November, increasing its total holdings to 174,530 BTC.

•  The company also announced a plan to raise $750 million in a sale of class A common stock.

• MicroStrategy’s founder and chairman Michael Saylor said the company is committed to investing in Bitcoin as a store of value and a hedge against inflation.

MicroStrategy’s Bitcoin Buying Spree

MicroStrategy, a business intelligence software company that made headlines in 2020 for its pro-Bitcoin strategy, has continued to buy more Bitcoin in November, bringing its total holdings to 174,530 BTC, worth approximately $6.6 billion at current prices.

According to a regulatory filing on Thursday, the company acquired 16,130 BTC for roughly $593.3 million in cash at an average price of $36,785 per Bitcoin. This marks an acceleration in the company’s Bitcoin buying activities, as it had bought 6,607 BTC from the beginning of the third quarter until the end of October. The company now holds 174,530 BTC bought at an average of about $30,252 per coin.

MicroStrategy also entered into an agreement with Cowen and Company, Canaccord Genuity and BTIG to offer up to $750 million worth of class A common stock. The company said it intends to use the net proceeds from the sale to acquire additional Bitcoin.

Source: Twitter

MicroStrategy’s founder and chairman Michael Saylor said in a tweet that the company is committed to investing in Bitcoin as a store of value and a hedge against inflation. He said the company now holds 174,530 BTC acquired for $5.28 billion at an average price of $30,252 per Bitcoin.

Strategy and Performance

MicroStrategy was one of the first publicly traded companies to adopt Bitcoin as its primary treasury reserve asset in August 2020, when it bought 21,454 BTC for $250 million. Since then, the company has been buying more Bitcoin at regular intervals, becoming the largest corporate holder of the cryptocurrency by far.

The company’s Bitcoin strategy has been driven by its former CEO and founder Michael Saylor, who has been a vocal advocate for Bitcoin as a superior asset to cash, gold, and real estate. Saylor has argued that Bitcoin is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.

The company’s Bitcoin strategy has also been reflected in its stock performance, as MicroStrategy’s shares have surged by 238% since the company adopted its “Bitcoin standard.” The company’s stock price reached a high of over $520 in November, a level not seen since 2000. The company’s stock price has fluctuated since then but still remains above $500 as of Thursday morning.

MicroStrategy’s Bitcoin strategy has also influenced other companies and investors to follow suit, most notably electric car company Tesla, which holds 9,720 BTC, or $366 million in digital coins. MicroStrategy also hosted a Bitcoin conference in February 2021, where it shared its playbook and best practices for corporate Bitcoin adoption with thousands of attendees.