• bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 16 Gwei
 

MORE FROM SPONSORED

LIVE Iron News

 

ARTICLE INFORMATION

MicroStrategy Increases Bitcoin Holdings with Record $2.03 Billion Purchase

MicroStrategy has taken another significant leap in its Bitcoin investment strategy, acquiring 27,200 BTC between October 31 and November 10, 2024, at an average price of $74,463 per Bitcoin. This $2.03 billion purchase marks the company’s largest single investment in the cryptocurrency, pushing its total Bitcoin holdings to a record-breaking 279,420 BTC, now valued at nearly $23 billion at current market rates.

Following this latest acquisition, Bitcoin reached an all-time high of $84,000, demonstrating MicroStrategy’s influence in the crypto market. The company’s strategic decision, led by co-founder and chairman Michael Saylor, underscores its unwavering confidence in Bitcoin as a long-term asset.



Funding and Strategy Behind the Acquisition
To fund this purchase, MicroStrategy utilized proceeds from recent stock sales. In August 2024, it signed a $2 billion sales agreement with financial firms including TD Securities, The Benchmark Company, and BTIG. This agreement enabled the issuance and sale of Class A common stock as needed to secure capital for Bitcoin purchases.

As that agreement neared depletion, MicroStrategy entered a new $21 billion sales agreement on October 30, 2024, partnering with Barclays Capital, Cantor Fitzgerald, and Mizuho Securities, among others. By November 10, the company had raised $2.03 billion through the sale of approximately 7.85 million shares under these agreements.

Despite concerns of potential share dilution from these stock sales, each outstanding MicroStrategy share currently represents 0.00124464 BTC, based on data from the MSTR-BTC tracker. This proportion reinforces the company’s positioning as a major player in the Bitcoin space, with around 197.3 million shares in circulation.

Bitcoin Price Impact and Market Reaction
MicroStrategy’s purchase initially led to a price surge, but Bitcoin briefly dipped 0.5% from $82,300 to $81,800 as news of the acquisition broke. This minor fluctuation, however, reflects typical market responses to large-scale trades and announcements in the cryptocurrency sector.

ANOTHER MUST-READ: The Bitcoin ETF Surge: $2.3 Billion in Just Three Days, Outpacing Gold

A Long-Term Vision for Bitcoin
Michael Saylor’s initial decision to invest in Bitcoin dates back to 2020, when he viewed the digital asset as a hedge against inflation. Initially, MicroStrategy used cash for its Bitcoin purchases, but it quickly adopted more advanced funding strategies, including stock issuance and convertible debt, to bolster its buying power.

Saylor’s steadfast commitment to Bitcoin has not only shaped MicroStrategy’s identity as a pioneering institutional investor but has also set a bold example for other companies considering cryptocurrency as part of their long-term investment portfolios. With its extensive holdings, MicroStrategy remains a critical player influencing both Bitcoin’s valuation and the growing trend of corporate adoption in the crypto space.

Please consider sharing this article

What is Bitcoin?

Bitcoin is a decentralized digital currency created in 2009 by an unknown person or group under the pseudonym Satoshi Nakamoto. It allows for peer-to-peer transactions without the need for intermediaries like banks. Bitcoin operates on a blockchain, a public ledger that records all transactions and ensures transparency and security. It’s limited to 21 million coins, giving it scarcity similar to gold, which has made it attractive as both an asset and hedge against inflation. Bitcoin can be bought, sold, and traded on exchanges, and its decentralized nature makes it resistant to government control and censorship.

FEATURED

EVENTS

Days
Hr
Min
Sec
 

ICN TALKS EPISODES