MicroStrategy ups Bitcoin total to $38b

MicroStrategy, under the leadership of Michael Saylor, has made a massive new Bitcoin purchase, acquiring an additional 15,400 BTC for $1.5 billion at an average price of $95,976 per coin. This acquisition brings MicroStrategy’s total Bitcoin holdings to approximately 402,100 BTC, worth over $38 billion at the current price of $95,194 per coin. Since it began accumulating Bitcoin in 2020, the company has spent $23.4 billion on its Bitcoin strategy, with an average cost per coin of $58,263. These investments have already generated over $15 billion in unrealized gains.

The firm has employed a unique strategy to fund these purchases, raising capital through share sales and the issuance of securities. MicroStrategy introduced the “BTC Yield” metric, which tracks the growth of its Bitcoin holdings in relation to share dilution. For the current quarter, MicroStrategy’s BTC Yield stands at 38.7%, and 63.3% for the year. This approach has not only bolstered MicroStrategy’s Bitcoin reserves but has also influenced other companies to follow suit.

Tokyo-based Metaplanet and Bitcoin mining company Marathon Digital have adopted similar methods to finance their own Bitcoin acquisitions. In fact, Marathon recently announced plans to raise $700 million through a private convertible note offering, with the funds intended primarily for further Bitcoin purchases.

Saylor, an outspoken advocate for Bitcoin, has continued to champion the cryptocurrency’s adoption. In a recent move, he pitched Bitcoin’s potential to Microsoft’s Board of Directors, reaffirming his role as a prominent figure in corporate cryptocurrency investment. MicroStrategy’s ongoing commitment to Bitcoin, along with its ability to raise significant capital for acquisitions, has solidified its position as one of the largest corporate Bitcoin holders in the world.