MicroStrategy solidifies its position as the largest corporate Bitcoin holder, now owning 386,700 BTC, which it acquired for $21.9 billion.
MicroStrategy Inc (NASDAQ: MSTR), a US-based business intelligence firm, has expanded its position as the largest corporate holder of Bitcoin BTC $84 502 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $9.20 B by purchasing an additional 55,500 BTC for approximately $5.4 billion.
The company announced on November 25 that the purchase was completed at an average price of $97,862 per Bitcoin, bringing its total holdings to an astounding 386,700 BTC.
Record-Setting Acquisition
The latest tranche of Bitcoin was acquired between November 21 and 24, shortly after MicroStrategy concluded its $3 billion convertible notes offering. As of November 24, 2024, the company and its subsidiaries have invested around $21.9 billion in Bitcoin, with an average acquisition price of $56,761 per BTC.
In addition to strengthening its position, MicroStrategy reported impressive Bitcoin yields of 35.2% quarter-to-date (QTD) and 59.3% year-to-date (YTD). This significant return further validates its strategy of using Bitcoin as a corporate reserve asset.
Year to date, $MSTR's treasury operations delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders, or ~341 BTC per day. At $100K per BTC, that would equate to $11.2 billion for the year so far, or $34.1 million per day.
— Michael Saylor⚡️ (@saylor) November 25, 2024
The company began accumulating Bitcoin in August 2020 under the leadership of its co-founder and then-CEO Michael Saylor. At the time, Saylor described Bitcoin as “digital gold” and a hedge against inflation. His vision was to leverage the crypto asset to preserve shareholder value amid a depreciating dollar and rising macroeconomic instability.
The firm has financed its Bitcoin purchases through various innovative means, including equity sales, convertible note offerings, and corporate cash flow. Over the years, MicroStrategy’s strategic moves have drawn widespread attention from institutional investors and crypto enthusiasts alike.
Saylor Transitions to Executive Chairman
Two years after the company purchased its first BTC, Saylor stepped down as CEO in August 2022 to focus exclusively on the company’s Bitcoin strategy.
He assumed the role of Executive Chairman, overseeing MicroStrategy’s crypto initiatives and strengthening its position as a Bitcoin advocate. His successor, Phong Le, took over as CEO to manage the company’s core business operations.
Saylor’s shift in focus allowed MicroStrategy to accelerate its Bitcoin strategy with continued acquisitions and a commitment to long-term HODLing. This relentless dedication has made MicroStrategy synonymous with corporate Bitcoin adoption, earning it the nickname “the corporate Bitcoin whale”.
Ripple Effect on Other Companies
Meanwhile, MicroStrategy’s bold approach has inspired other financial services firms to integrate Bitcoin into their corporate strategies. Metaplanet, a publicly listed company in Tokyo, Japan, adopted Bitcoin as its reserve asset in early April 2024.
Metaplanet credited MicroStrategy’s success as the driving force behind its decision to accumulate Bitcoin, citing it as a hedge against inflation and currency devaluation. Last week, the company increased its Bitcoin reserve with an additional 124 BTC.
Similarly, MicroStrategy’s influence has extended to other firms and public companies, with many reassessing their treasury strategies to include Bitcoin. On Monday, November 25, Semler Scientific Inc, a publicly traded company specializing in medical technology announced that it has purchased an additional 297 BTC to increase its portfolio. The latest acquisition brings its total bitcoin holding to 1,570 BTC.
In September, BlackRock, one of the world’s most prominent asset managers, purchased $35 million worth of BTC to add to its portfolio. The company had earlier acquired $1 billion worth of the leading crypto asset in July.
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