MicroStrategy has made headlines with its largest Bitcoin purchase to date, acquiring 55,500 BTC between Nov. 18 and 24 for $5.4 billion. The purchase, disclosed in a filing with the U.S. Securities and Exchange Commission (SEC), was made at an average price of $97,862 per Bitcoin. This move elevates the company’s total holdings to 386,700 BTC, valued at approximately $37.6 billion.
The firm’s cumulative Bitcoin investment now totals $21.9 billion, with an average acquisition cost of $56,761 per Bitcoin. The latest acquisition was funded through a $3 billion debt offering, netting $2.97 billion, alongside $2.46 billion raised from the sale of 5.6 million shares.
MicroStrategy’s recent Bitcoin activity reflects an intensification of its investment strategy. Earlier this month, the company purchased 51,780 BTC for $4.6 billion, following a $2 billion acquisition just weeks before. These aggressive buys coincide with Bitcoin’s price surge, nearing the $100,000 milestone.
Michael Saylor, MicroStrategy’s executive chairman, highlighted the company’s growing stake via social media, pointing out its year-to-date Bitcoin yield of 59.3%. This proprietary metric tracks the increase in Bitcoin holdings against share dilution.
Despite its ambitious Bitcoin strategy, MicroStrategy’s stock has faced volatility. While shares surged by 4% during pre-market trading on Nov. 25, they closed the day down 1% at $418. The stock has risen 500% year-to-date, driven by Bitcoin’s record-setting rally.
However, the company has faced skepticism. Citron Research recently announced a short position against MicroStrategy, citing concerns over its valuation. The stock trades at a 2.5x premium relative to its Bitcoin holdings, which some analysts believe is unsustainable.
MicroStrategy has bold plans to raise $42 billion over the next three years via equity and fixed-income securities to fund additional Bitcoin acquisitions. Analysts at Bernstein estimate the firm could own 4% of Bitcoin’s total supply by 2033, potentially accumulating 830,000 BTC valued at $830 billion, assuming Bitcoin reaches $1 million per coin.
This month alone, MicroStrategy added 134,480 Bitcoin, valued at $13 billion—a volume it previously took three years to acquire. Other firms are following its lead; Semler Scientific, a medical device maker, recently announced the purchase of 297 Bitcoin, bringing its total holdings to 1,570 BTC.
As Bitcoin’s price rallies, MicroStrategy’s position as the largest corporate Bitcoin holder solidifies. The company’s strategy underscores its confidence in Bitcoin as a key asset for the long term.
