MicroStrategy Makes Record $4.6 Billion Bitcoin Purchase, Largest Yet
Business intelligence firm MicroStrategy has ramped up its Bitcoin (BTC) investment following President-elect Donald Trumps victory in the presidential election. This pivotal moment on November 5 has provided a catalyst for the broader crypto market, further encouraging investment in digital assets.
Bitcoin Holdings To Over $29 Billion
Led by Bitcoin advocate Michael Saylor, MicroStrategy disclosed on Monday that it has acquired approximately 51,780 Bitcoin for around $4.6 billion. This acquisition marks the largest purchase by the company since it began its Bitcoin buying strategy more than four years ago.
According to a filing with the US Securities and Exchange Commission, the tokens were purchased between November 11 and November 17. With this latest acquisition, MicroStrategys total Bitcoin holdings now exceed $29 billion or 331,200 BTC.
Saylors journey into Bitcoin began in 2020 as a strategy to hedge against inflation. Initially funded through cash reserves, the company has since pivoted to using proceeds from stock issuances and convertible debt sales to enhance its purchasing power in the cryptocurrency market.
Michael Saylor has also reaffirmed his commitment to this strategy. He aims to raise $42 billion over the next three years to further strengthen the companys BTC portfolio and transform Microstrategy into a leading crypto bank.
BTC Yield Rises To 20.4% Amid Market Optimism
Recent data from South Korea-based crypto analytics firm CryptoQuant highlights the impact of MicroStrategys latest purchase on its Bitcoin statistics:
- BTC Holdings: Increased from 279,420 BTC to 331,200 BTC
- MSTR Realized Price: Rose from $42,692 to $49,874
- MSTR Market Value to Realized Value (MVRV): Adjusted from 2.12 to 1.80
- Percentage of BTC Owned by MicroStrategy: Increased from 1.412% to 1.674%
This latest transaction follows closely on the heels of another significant acquisition on November 11, during which Saylor noted that the companys treasury operations had yielded an 7.3% in Bitcoin, translating to a net benefit of approximately 18,410 BTC for shareholders.
However, with Mondays announcement and the notable uptrend in the Bitcoin price over the past two weeks, Saylor revealed that these metrics have risen to a BTC yield of 20.4% and a net benefit to shareholders of 51,470 BTC.
The correlation between MicroStrategys stock (MSTR) and Bitcoins price has also been particularly noteworthy in recent weeks. Following Bitcoins record high of $93,300 on November 13, MicroStrategys stock also reached an all-time high of $383.
Yet, as the leading digital asset of the market retraced to around $90,650a 9% increase over the past weekMSTRs share price also declined to approximately $359 over the past weekend, underscoring the strong relationship between the cryptocurrency and the firms stock performance.
Featured image from DALL-E, chart from TradingView.com
Text source: NewsBTC
