MicroStrategy has solidified its position as one of the largest Bitcoin investors. The company recently announced the purchase of an additional 15,400 Bitcoin, valued at approximately $1.5 billion. With this acquisition, their total Bitcoin holdings have reached 402,100 BTC, worth around $38 billion at current prices.
A Steady Stream of Bitcoin Buys
MicroStrategy hasn’t slowed down in its Bitcoin strategy. Over the past month, they’ve consistently added to their holdings every week. Just last week, they acquired 55,500 BTC for $5.4 billion, and the week before that, they spent $4.6 billion on Bitcoin. This pattern shows how much confidence they have in Bitcoin’s potential.
How Do They Fund It All?
You might wonder how a company can keep making such massive purchases. MicroStrategy uses a creative financing approach. They’ve set up a deal to sell up to $21 billion in company shares, using the proceeds directly for Bitcoin acquisitions. By raising funds this way, they can keep adding to their Bitcoin reserves without taking on debt.
Why It Matters
MicroStrategy’s actions send a clear message to the market: they believe Bitcoin is a valuable long-term asset. Despite an average purchase price of nearly $96,000 per Bitcoin in their most recent buy, the company is betting on further growth. Their strategy seems to be working, with a “Bitcoin Yield”—a metric that tracks the growth of Bitcoin holdings relative to company shares—of 63% for the year.
MicroStrategy has acquired 15,400 BTC for ~$1.5 billion at ~$95,976 per #bitcoin and has achieved BTC Yield of 38.7% QTD and 63.3% YTD. As of 12/2/2024, we hodl 402,100 $BTC acquired for ~$23.4 billion at ~$58,263 per bitcoin. $MSTR https://t.co/K3TK4msGp0
— Michael Saylor⚡️ (@saylor) December 2, 2024
Michael Saylor Wants Microsoft to Join the Party
Michael Saylor, who founded MicroStrategy, doesn’t just want his company to invest in Bitcoin—he’s encouraging others to do the same. Recently, he suggested to Microsoft’s CEO Satya Nadella and the board that they should start buying Bitcoin too. Saylor sees Bitcoin as much more than a cryptocurrency. He calls it “digital capital” and believes it’s the most important technological shift of the century.
In his view, Microsoft could benefit significantly by reallocating resources. Instead of using cash for dividends or share buybacks, Saylor argues, the company should invest in Bitcoin. He points out that Bitcoin doesn’t carry counterparty risk—meaning it doesn’t rely on other parties to fulfill obligations, unlike traditional investments like bonds.
Big Predictions for Microsoft
Saylor even laid out some big numbers. He claims Microsoft could increase its stock price by $584 per share and add $4.9 trillion to its enterprise value by 2034 if it embraced Bitcoin. He believes this move would make Microsoft less dependent on outdated financial strategies and position it for future success.
My 3-minute presentation to the $MSFT Board of Directors and @SatyaNadella, articulating why the company should do the right thing and adopt #Bitcoin. pic.twitter.com/aHp91V9Slz
— Michael Saylor⚡️ (@saylor) December 1, 2024
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