Key Points
- MicroStrategy Inc has added 21,550 Bitcoins to its holdings, valued at about $2.1 billion.
- The company now owns over 2% of Bitcoin’s total supply, with plans to become the largest Bitcoin bank.
MicroStrategy Inc, an American software development firm, has further increased its Bitcoin holdings. The company’s Chairman, Michael Saylor, recently announced the acquisition of an additional 21,550 Bitcoins, equivalent to approximately $2.1 billion.
MicroStrategy’s Commitment to Bitcoin
The recent acquisition marks MicroStrategy’s fifth consecutive weekly Bitcoin purchase, reflecting the company’s dedication to the leading cryptocurrency. The 21,550 Bitcoins were bought at an estimated cost of $98,783 per coin.
This purchase has boosted the company’s Bitcoin Yield to 43.2% for the quarter and 68.7% for the year. Consequently, MicroStrategy’s Bitcoin portfolio now comprises 423,650 Bitcoins, purchased for $25.6 billion at an average cost of $60,324 per coin. This latest acquisition means the company now owns over 2% of Bitcoin’s total supply.
The company made the latest purchase between December 2 and 8. It was reported that MicroStrategy announced the acquisition of 15,400 Bitcoins on December 2 for approximately $1.5 billion. The company plans to hold its Bitcoins for the long term and aims to become the largest Bitcoin bank. This ambitious goal is largely supported by institutional investors looking to diversify into crypto.
MicroStrategy’s Influence on Bitcoin Adoption
MicroStrategy’s success has prompted other companies worldwide to consider Bitcoin as a strategic reserve asset. The company has managed to attract global investors, including European central banks.
Worksport, a renewable energy firm, recently announced plans to buy Bitcoin for its corporate treasury. Rumble Inc, a fast-growing video-sharing platform and cloud services provider, also made a bold move towards Bitcoin adoption. The company announced plans to purchase $20 million worth of Bitcoin, depending on market conditions. Following the announcement, Rumble’s shares surged by over 28% to trade at about $7.6.
In addition, MARA Holdings Inc, a prominent Bitcoin miner, has revealed plans to acquire more Bitcoins. The company intends to use proceeds from its $700 million private offering of 0% convertible senior notes, due in 2031, to fund the purchase.
The National Center for Public Policy Research (NCPPR) has also proposed a shareholder recommendation to Amazon, suggesting that the company diversify at least 5% of its financial reserves into Bitcoin. Meanwhile, Microsoft is set to make history as its shareholders vote on a Bitcoin adoption proposal this week.
