MicroStrategy, a business intelligence company, has boosted its Bitcoin investments. It bought 51,780 BTC for $4.6 billion. This latest acquisition represents the company's largest single buy and further supports the notion of Bitcoin as a reserve currency.
This purchase equates to approximately 16% of the company’s overall Bitcoin portfolio; MicroStrategy now holds 331,200 BTC. The current purchase has been the largest for the company as it bought the Bitcoins at an average of $88,627 per coin. MicroStrategy started acquiring Bitcoin via investment in August 2020 with a total of $250 million worth of BTC. The company until now, has accumulated Bitcoin, at an aggregate price tag of $16.5 billion.
This strategic move occurred at a time when Bitcoin hit a new all-time high on 12th November and continued to rise hitting $ 92,400. It signifies that MicroStrategy is bullish on Bitcoin and that it isn’t worried about the volatility in the crypto market despite the recent upheavals.
MicroStrategy funded this significant acquisition through the share sale agreement with firms such as TD Securities, Barclays Capital, and others. Between November 11th and 13th, the firm offered 13.6 mobile shares and managed to make $4.6 billion. In the United States Securities and Exchange Commission filing, about $15.3 billion of the shares are still open for sale under the agreement.
Additionally, the company aims at issuing zero-interest convertible notes with a total of $1.75 billion, due in 2029, for further Bitcoin purchases. MicroStrategy’s long-term strategy is called the “21/21 plan,” which plans to buy $42 billion in 3 years, $21 billion in equity, and $21 billion in fixed-income securities. This strategy aims to develop a market in which MicroStrategy is recognized as an institutional investor in Bitcoin.
The latest buyout strengthens MicroStrategy as a significant market participant with over 1% of BTC owned by the company. This rapid acquisition strategy aligns with the organization’s view of Bitcoin as a reliable store of value. The increase in the Bitcoin market price led to a market capitalization of more than $1.8 trillion, showing institutional demand.
MicroStrategy’s market value has similarly increased, reaching approximately $69 billion as of November 18. Former CEO Michael Saylor, a vocal proponent of Bitcoin, has dismissed concerns of a significant price retracement, believing that Bitcoin’s value will continue to rise.