MicroStrategy Makes Record $4.6 Billion Bitcoin Purchase, Largest Yet

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As a seasoned researcher with a knack for deciphering market trends and a keen interest in Bitcoin, I find myself utterly intrigued by MicroStrategy’s latest moves under the leadership of Michael Saylor. His strategic approach to hedge against inflation and transform the company into a crypto powerhouse is nothing short of fascinating.

In response to Donald Trump’s win in the 2016 U.S. Presidential Election on November 8th, business intelligence company MicroStrategy increased its Bitcoin (BTC) investments significantly. This event served as a trigger, boosting the entire crypto market and inspiring more investment in digital assets.

Bitcoin Holdings To Over $29 Billion

Under the guidance of Bitcoin proponent Michael Saylor, MicroStrategy announced on Monday that they have purchased roughly 51,780 Bitcoins at an estimated cost of $4.6 billion. This acquisition represents the largest single purchase by the company since they initiated their Bitcoin buying strategy over four years ago.

As per a document submitted to the U.S. Securities and Exchange Commission, these tokens were bought from November 11 up until November 17. This latest purchase brings MicroStrategy’s total Bitcoin holdings to over $29 billion, or approximately 331,200 Bitcoins.

In 2020, Saylor decided to enter the Bitcoin world as a protective measure against inflation. At first, the company financed its entry using cash reserves. However, it later shifted its strategy, utilizing funds from stock offerings and sales of convertible debt to boost its investment power in the Bitcoin market.

Michael Saylor continues to stand behind this approach, with plans to accumulate approximately $42 billion in Bitcoin within the next three years. His goal is to fortify Microstrategy’s Bitcoin holdings and position the company as a prominent player in the cryptocurrency banking sector.

BTC Yield Rises To 20.4% Amid Market Optimism

New data from a South Korean cryptocurrency analysis company, CryptoQuant, shows how MicroStrategy’s recent Bitcoin acquisition has affected their statistical data.

  • 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%

Just recently, this latest transaction aligns with another substantial acquisition from November 11th. In that deal, Saylor mentioned that the company’s treasury activities had generated around 7.3% in Bitcoin, equating to roughly 18,410 BTC as a net gain for shareholders.

Yet, following Monday’s declaration and the significant rise in Bitcoin’s value over the previous fortnight, MicroStrategy’s CEO, Saylor, disclosed that these indicators have climbed to a Bitcoin return of 20.4% and a net advantage to shareholders amounting to 51,470 Bitcoins.

Lately, I’ve noticed a striking correlation between the price of Bitcoin and MicroStrategy’s stock (MSTR). In fact, just after Bitcoin hit its record high of $93,300 on November 13, I saw MicroStrategy’s stock touch an all-time high of $383 as well.

Despite Bitcoin, the leading digital currency in the market, rising by about 9% over the last week to around $90,650, MicroStrategy’s (MSTR) share price dropped to approximately $359 during the weekend. This suggests a strong correlation between the value of the cryptocurrency and MSTR’s stock performance.

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2024-11-18 19:16