Key Points
- MicroStrategy Inc. has bought 51,780 Bitcoins, extending its total Bitcoin holdings to 331,200 BTC.
- The company’s stock, MSTR, has seen nearly 400% gains since the start of 2024.
MicroStrategy Inc’s executive chairman, Michael Saylor, has announced the company’s purchase of 51,780 Bitcoins, worth an impressive $4.6 billion. The purchase was made over the last week at an average price of $88,627 per Bitcoin.
This new acquisition brings the company’s total Bitcoin holdings to 331,200 BTC, with a net investment value of $16.5 billion since September 2020.
Funding and Expansion
To fund this purchase, nearly 13.6 million MSTR shares worth $4.6 billion were sold. Saylor is known for his aggressive Bitcoin buying strategy, quickly deploying cash to increase the company’s Bitcoin reserves.
According to MicroStrategy’s at-the-market share issuance program, the company has an additional $15.3 billion of stock to sell. Over the last week, there has been significant Bitcoin buying by large corporations and through spot Bitcoin ETFs.
Companies like Semler Scientific, Metaplanet, and Marathon Digital have also added Bitcoin to their reserves.
The company’s most recent Bitcoin purchase has led to a strong yield, with a 20.4% return quarter-to-date (QTD) and 41.8% year-to-date (YTD). The company has been purchasing Bitcoin at an average price of $49,000, further cementing its position as one of the largest institutional Bitcoin holders.
Future Plans
Saylor has indicated that MicroStrategy is just beginning its Bitcoin acquisition strategy. The company has announced its ambitious new “42” strategy, aiming to raise $42 billion to expand its Bitcoin holdings further.
The plan is to secure $21 billion in debt and raise an additional $21 billion through secondary stock offerings. All proceeds will be dedicated to purchasing more Bitcoin.
MicroStrategy’s stock, MSTR, has seen a significant increase this year, with nearly 400% gains since the beginning of 2024. Currently, it is trading at $340 levels, with the company’s valuation soaring to $67 billion.
Despite these developments, the MSTR share price has not seen much movement, with less than 1% gains at the time of writing. In the last quarter ending September, Wall Street banking giant JPMorgan aggressively purchased MSTR stocks.
JPMorgan has increased its exposure to MicroStrategy, raising its stake by 12.5% to a total of 660,693 shares, valued at $111.39 million at the end of Q3. This move is part of the bank’s ongoing strategy to enhance its cryptocurrency portfolio.
If the bullish trend continues, the MSTR stock could hit $400 by the end of November. However, investors are advised to do their due diligence before building fresh positions after the massive run-up in a very short period of time.
