- MicroStrategy increased its Bitcoin holdings to 331,200 BTC, worth $30 billion, sparking a stock boom.
- This coincided with the acquisitions of MicroStrategy under its ambitious “21/21 plan” and Bitcoin reaching $90,000.
MicroStrategy Inc. has made headlines again with its aggressive Bitcoin [BTC] acquisition strategy. The company purchased $4.6 billion worth of Bitcoin.
In line with its commitment to expanding BTC holdings, the enterprise software giant acquired approximately 51,780 Bitcoin between November 11 and 17, according to a recent SEC filing.
This latest purchase follows acquisitions in October and September, bringing the company’s total BTC holdings to an impressive $30 billion.
MicroStrategy founder Michael Saylor also shared his thoughts on X (formerly Twitter), saying:
Source: Michael Saylor/X
This led to shares of MicroStrategy (MSTR) rising about 13% on November 18 to hit an all-time high.
Impact on MicroStrategy’s stock price
This remarkable performance underlines the company’s success in 2024, with MSTR shares up more than 500% so far this year. According to Yahoo Finance, this significantly exceeds Microsoft’s 11% growth over the same period.
Currently trading at $384.79 per share Google FinanceMicroStrategy’s aggressive BTC strategy delivers substantial returns. This includes the stock appreciation and the rising value of its cryptocurrency holdings.
In addition, the company plans to raise $1.75 billion through a private offering of zero-interest convertible senior notes. These notes mature in December 2029, reinforcing its commitment to expand its Bitcoin investments.
Source: Michael Saylor/X
Community response
By observing the company’s significant progress, X user noted,
“Big moves! MicroStrategy is playing chess while others are stuck playing checkers.”
However, critics like Peter Schiff took the opportunity to voice their opinion, saying:
Source: Peter Schiff/X
Despite criticism from figures like Schiff, MicroStrategy has cemented its position as the largest institutional Bitcoin holder, having acquired an impressive 331,200 BTC at a cumulative cost of $16.5 billion – significantly below its current market value.
This milestone comes as Bitcoin trades at all-time highs, surpassing $90,000 following the US elections.
As of the last update, BTC was valued at $91,767.56, reflecting a small decline of 0.03% in the past 24 hours but maintaining strong weekly and monthly gains of 2.72% and 34.19% respectively. CoinMarketCap.
MicroStrategy’s roadmap for the future
MicroStrategy’s latest Bitcoin acquisition was funded by the sale of approximately 13.6 million company shares. This step was in line with the ambitious ’21/21 plan’.
The strategy aims to raise $42 billion over three years through equities and fixed income. This reflects the company’s commitment to expanding its BTC holdings.
Since adopting Bitcoin as a core reserve in August 2020, MicroStrategy has used it to hedge against inflation and diversify its treasury.
The open-source BTC reserve strategy has inspired other publicly traded companies, such as Marathon Digital Holdings and Semler Scientific, to take similar approaches, signaling a growing trend in corporate Bitcoin investments.