MicroStrategy Acquires 27,200 BTC for $2.03 Billion

Michael Saylor’s MicroStrategy has solidified its status as the leading corporate holder of Bitcoin with a significant acquisition of 27,200 BTC.

The purchase, which amounts to $2.03 billion, took place between October 31 and November 10, 2024, at an average cost of $74,463 per coin, inclusive of fees, as stated in an official press release from the company.

This latest acquisition raises MicroStrategy’s total Bitcoin holdings to approximately 279,420 BTC, with an overall investment of $11.9 billion.

Average Purchase Price of MicroStrategy

MicroStrategy's average purchase price now stands at $42,692 per Bitcoin, compared to the current market price of $81,700.

On Monday, Bitcoin reached a new all-time high, surpassing $82,000, driven by increased optimism following the U.S. elections that saw several pro-crypto candidates elected.

This surge was reflected in the futures market, where open interest for Bitcoin on the Deribit exchange exceeded $2.8 billion.

Michael Saylor tweeted:
"MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved a BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hold 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin."

MicroStrategy's Financial Performance

Despite the aggressive Bitcoin acquisition strategy, MicroStrategy recently reported mixed earnings, falling short of revenue expectations with quarterly sales of $116 million against a consensus estimate of $122.66 million.

The company, however, remains committed to its Bitcoin strategy, planning to raise $42 billion in capital for future acquisitions.

This strategy, known as the "21/21 plan," aims to raise $21 billion in equity and another $21 billion in fixed-income securities to continue its Bitcoin purchasing spree.

Increasing Adoption of Bitcoin as a Reserve Asset

The current macroeconomic landscape, marked by rising inflation and geopolitical tensions, has led corporate treasurers to consider Bitcoin as a viable reserve asset.

Recently, digital asset prime services platform Abra launched a service aimed at corporates interested in holding cryptocurrencies as reserve assets on their balance sheets.

In Japan, investment firm Metaplanet has been actively increasing its Bitcoin holdings since May, driven by the nation's economic challenges, including high government debt and negative interest rates.

In addition to acquiring Bitcoin, Metaplanet plans to exercise stock acquisition rights to generate 299.7 million yen for further Bitcoin investments and has partnered with SBI VC Trade for corporate custody services to enhance tax efficiency and financing options using Bitcoin as collateral.

Last month, Metaplanet raised approximately 10 billion yen ($66 million) through a stock acquisition rights offering, attracting nearly 14,000 individual shareholders.