MicroStrategy Bitcoin Bet: Another $1.5 Billion Invested

MicroStrategy has further increased its Bitcoin reserves, acquiring 15,400 BTC for an estimated $1.5 billion. This latest purchase continues the company’s strategy of bolstering its digital asset holdings.

According to a Form 8-K, the business intelligence company acquired the massive amount of BTC for an average price of $95,976 per Bitcoin.

MicroStrategy CEO Michael Saylor announced on X that the company’s recent purchase brought its Bitcoin returns to 38.7% for the quarter and 63.3% for the year. As of December 1, MicroStrategy’s Bitcoin holdings have reached a total of 402,100 BTC, representing an investment of approximately $23.4 billion.

MicroStrategy has acquired 15,400 BTC for ~$1.5 billion at ~$95,976 per #bitcoin and has achieved BTC Yield of 38.7% QTD and 63.3% YTD. As of 12/2/2024, we hodl 402,100 $BTC acquired for ~$23.4 billion at ~$58,263 per bitcoin. $MSTR https://t.co/K3TK4msGp0
— Michael Saylor⚡️ (@saylor) December 2, 2024

Its strategic accumulation of Bitcoin continues to strengthen its position as one of the largest corporate holders of the cryptocurrency, with the average purchase price for the holdings estimated at $58,263 per Bitcoin.

MicroStrategy’s purchase was financed through the sale of Class A common stock under an existing agreement. This allows the company to issue and sell shares, raising capital for various purposes, including its Bitcoin strategy.

Between November 25 and December 1, MicroStrategy had sold about 3.7 million shares, generating nearly $1.48 billion in net proceeds.

Saylor Champions Bitcoin

Saylor has been an outspoken advocate for Bitcoin, emphasizing its potential as a premier store of value. His championing of Bitcoin began in 2020 when he moved a significant portion of his company’s treasury reserves into it.

He argues that Bitcoin’s fixed supply and decentralized nature make it a more dependable asset compared to the inflationary tendencies of traditional financial systems. Saylor has also been vocal on how cryptocurrency could play a key role in the future of corporate balance sheets.

The company’s acquisition of additional BTC immediately followed Saylor’s 3-minute pitch to Microsoft’s Board of Directors. Saylor advised the tech giant that it could increase its market capitalization by nearly $5 trillion if it fully embraced Bitcoin as part of its financial strategy.

“It makes a lot more sense to buy Bitcoin than buy your own stock back, or to hold Bitcoin rather than holding bonds,” Saylor stated in his 44-slide presentation.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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