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Michael Saylor’s MicroStrategy has strengthened its status as the largest corporate holder of Bitcoin with a recent acquisition of 27,200 BTC.
This purchase, valued at $2.03 billion, occurred between October 31 and November 10, 2024, at an average price of $74,463 per coin, inclusive of fees, as stated in an official press release from the company.
This latest acquisition increases MicroStrategy’s total Bitcoin holdings to around 279,420 BTC, obtained for a total of $11.9 billion.
MicroStrategy’s Average Purchase Price Now at $42,600
The company’s average purchase price is now recorded at $42,692 per coin, in contrast to Bitcoin’s current price of $81,700.
On Monday, Bitcoin surged to a new all-time high exceeding $82,000, driven by rising optimism from U.S. elections that saw several pro-crypto candidates elected.
This rally was reflected in significant activity within futures markets, with open interest for Bitcoin on the Deribit exchange surpassing $90,000, totaling over $2.8 billion.
MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd
— Michael Saylor
(@saylor) November 11, 2024
In the meantime, MicroStrategy’s latest acquisition comes on the heels of a mixed earnings report, with the company missing revenue expectations by reporting $116 million in quarterly sales against a consensus estimate of $122.66 million.
Nonetheless, the company’s Bitcoin strategy remains assertive, with intentions to raise $42 billion in capital for additional acquisitions in the upcoming years.
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Referred to as the “21/21 plan,” this strategy aims to raise $21 billion in equity and $21 billion in fixed-income securities to support its aggressive Bitcoin acquisition efforts.
More Firms Embrace Bitcoin as a Reserve Asset
The prevailing macroeconomic uncertainties, marked by rising inflationary pressures and geopolitical tensions, have led corporate treasurers to consider Bitcoin as a reserve asset.
Recently, digital asset prime services platform Abra introduced a service tailored for corporations looking to hold cryptocurrencies as reserve assets on their balance sheets.
Similarly, Japanese investment firm Metaplanet has been actively expanding its Bitcoin holdings since May, when it announced its intention to utilize Bitcoin as a strategic treasury reserve.
This decision was influenced by Japan’s economic difficulties, including substantial government debt, negative interest rates, and a depreciating yen.
In addition to its Bitcoin acquisition, Metaplanet disclosed plans to exercise stock acquisition rights, generating 299.7 million yen to finance further Bitcoin purchases.
The firm also announced a collaboration with SBI VC Trade, the crypto subsidiary of SBI Group, to access corporate custody services that enhance tax efficiency and offer potential financing options using Bitcoin as collateral.
Last month, the firm raised approximately 10 billion yen ($66 million) through a stock acquisition rights offering, attracting 13,774 individual shareholders.
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