As an analyst with over two decades of experience in the financial markets, I’ve witnessed countless trends and shifts that have reshaped industries. However, few have caught my attention quite like MicroStrategy’s relentless pursuit of Bitcoin.
MicroStrategy Inc., a U.S.-based business intelligence company, has increased its holdings of Bitcoin by acquiring an extra 55,500 BTC at around $5.4 billion, making it the largest corporate owner of Bitcoin.
On November 25th, it was revealed that the company finalized the acquisition at an approximate cost of USD 97,862 for each Bitcoin, amassing a remarkable 386,700 Bitcoins in total holdings as a result.
Record-Setting Acquisition
On November 21 to November 24, the most recent batch of Bitcoins was purchased. This came shortly after MicroStrategy finished a $3 billion offering for convertible notes. By November 24, 2024, the company and its affiliates had invested approximately $21.9 billion in Bitcoin. The average price at which they bought each Bitcoin was roughly $56,761.
Beyond enhancing its standing, MicroStrategy has shown remarkable Bitcoin earnings of 35.2% for the current quarter and an astounding 59.3% for the year so far. This substantial profit reinforces their tactic of utilizing Bitcoin as a corporate reserve currency.
To this point in the year, Mastercard’s treasury activities have generated a Bitcoin Yield of approximately 59.3%. This significant return has translated into roughly 112,125 Bitcoins being distributed to our shareholders, which is equivalent to around 341 Bitcoins each day. Given the current market value of $100,000 per Bitcoin, this year-to-date yield amounts to an impressive $11.2 billion, or $34.1 million on a daily basis.
— Michael Saylor⚡️ (@saylor) November 25, 2024
In August 2020, the company started acquiring Bitcoin, led by its co-founder and CEO at the time, Michael Saylor. During this period, Saylor referred to Bitcoin as “digital gold” and a safeguard against inflation. His objective was to utilize this digital asset to maintain shareholder value during a weakening dollar and increasing macroeconomic uncertainty.
As a proud crypto investor, I’ve noticed that MicroStrategy has funded its Bitcoin acquisitions through a variety of creative methods such as selling equity, offering convertible notes, and utilizing corporate cash flow effectively. Over time, their strategic decisions have garnered significant interest not only from institutional investors but also from the broader crypto community.
Saylor Transitions to Executive Chairman
In August 2022, two years following the acquisition of its initial Bitcoin, the former CEO, Saylor, chose to dedicate all his attention to the company’s Bitcoin plan, stepping down from his position.
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.
Due to Saylor’s change in direction, MicroStrategy aggressively advanced its Bitcoin approach through ongoing purchases and a firm pledge to long-term holding. This unwavering commitment has positioned MicroStrategy as a key player in corporate Bitcoin adoption, earning it the moniker “the corporate Bitcoin whale”.
Ripple Effect on Other Companies
As a researcher, I’ve observed an inspiring trend: MicroStrategy’s daring strategy of incorporating Bitcoin into their financial operations has prompted other companies in the service sector to follow suit. In the bustling city of Tokyo, Japan, Metaplanet – a publicly traded company – took a significant step forward by adopting Bitcoin as its reserve asset back in early April 2024.
As an analyst, I attribute MicroStrategy’s impressive performance as a significant factor in my own decision to amass Bitcoin. I view this digital currency as a strategic hedge against potential inflation and currency devaluation. Just recently, I bolstered my Bitcoin reserves with an additional 124 coins, further solidifying this investment strategy.
Just like MicroStrategy, the impact of Bitcoin ownership has been felt by other corporations and public companies, leading them to reconsider their cash management strategies in favor of Bitcoin. On Monday, November 25th, Semler Scientific Inc., a publicly traded medical technology company, revealed that it had purchased an additional 297 Bitcoins, boosting its overall holdings to 1,570 Bitcoins.
In September, one of the globe’s leading asset management firms, BlackRock, invested approximately $35 million in Bitcoin (BTC), expanding their holdings. Previously, in July, they had already bought a billion dollars’ worth of this premier cryptocurrency.
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2024-11-25 18:18