MicroStrategy has further expanded its Bitcoin holdings, adding 27,200 BTC worth over $2 billion between October 31 and November 10, bringing its total treasury to 279,420 Bitcoin valued at $22.8 billion.
The latest acquisition reflects MicroStrategy's ongoing strategy of using excess cash reserves to purchase Bitcoin. The Virginia-based firm disclosed that the average purchase price for this new tranche was $74,463 per Bitcoin. With a total investment of $11.9 billion in Bitcoin at an average cost of $42,692 per coin, the company is on the cusp of doubling its return on investment.
MicroStrategy, which pivoted from software development to a Bitcoin-focused strategy, first entered the market in 2020. The move was spearheaded by then-CEO Michael Saylor, now serving as Executive Chairman. Saylor’s vision was to hedge against inflation and optimize shareholder returns amid the pandemic by turning the company into a major Bitcoin holder. MicroStrategy has since become a proxy for Bitcoin exposure, catering to traditional investors who prefer not to navigate cryptocurrency exchanges or spot exchange-traded funds (ETFs).
The firm’s aggressive acquisition strategy is funded through debt and share issuance, underscoring Saylor's confidence in Bitcoin's long-term value as a "digital gold." Saylor frequently emphasizes Bitcoin as a reliable store of wealth.
Currently, Bitcoin is trading at $81,636, marking a 19% increase over the past week. The cryptocurrency has hit new all-time highs following Donald Trump’s recent presidential win, which has buoyed market sentiment. The record price of $82,379 was reached earlier this week, as expectations grow that the President-elect will support the crypto industry and create favorable conditions for digital assets.
Source: MicroStrategy Now Holds Nearly $23 Billion in Bitcoin With Latest Buy