MicroStrategy Expands Bitcoin Holdings with $1.5 Billion Purchase

MicroStrategy, a prominent corporate Bitcoin investor, has made another major acquisition, purchasing 15,400 BTC for $1.5 billion between November 25 and December 1, 2024. This latest purchase was funded through a stock sale under the company’s at-the-market (ATM) equity program. The Bitcoin was acquired at an average price of $95,976 per coin.

In a filing with the U.S. Securities and Exchange Commission (SEC) on December 2, MicroStrategy revealed that it had sold 3.7 million shares of its Class A common stock, raising $1.48 billion in net proceeds. These funds were then directed towards acquiring the 15,400 Bitcoin. As of December 1, MicroStrategy’s total Bitcoin holdings have reached 402,100 BTC, valued at around $38.4 billion at current market prices. The company has invested a total of $23.4 billion in Bitcoin, resulting in an impressive 64% return on its investment.

A $5.4 Billion Investment Just One Week Earlier

This most recent Bitcoin acquisition follows a substantial purchase made just a week prior. Between November 18 and November 24, MicroStrategy acquired 55,000 BTC for $5.4 billion, at an average price of $97,862 per coin. The funding for this large-scale purchase was sourced from multiple avenues, including a private offering of 0% convertible senior notes due in 2029, as well as proceeds from the company’s ongoing ATM equity program.

MicroStrategy's aggressive Bitcoin purchasing strategy underscores its commitment to building a massive Bitcoin reserve. As of now, the company holds more Bitcoin than any other publicly traded entity, further solidifying its position as a leader in corporate Bitcoin adoption.

Michael Saylor Calls on Microsoft to Embrace Bitcoin

While MicroStrategy continues to expand its own Bitcoin holdings, the company's Executive Chairman, Michael Saylor, has also been advocating for other major tech companies to follow suit. Saylor recently pitched to Microsoft’s board, urging the tech giant to adopt a similar strategy by converting its assets into Bitcoin.

Saylor proposed that by fully embracing Bitcoin, Microsoft could increase its market capitalization by nearly $5 trillion, making a bold case for Bitcoin as the next major wave in technology. He argued that Microsoft cannot afford to miss out on what he sees as the future of digital finance and value storage.

In his pitch, Saylor suggested that Microsoft should convert its dividend payouts, stock buybacks, cash flows, and even its debt into Bitcoin. He believes such a move could add hundreds of dollars to Microsoft’s share price and potentially increase it by as much as $584 per share over the next decade. Saylor’s vision is to create trillions of dollars in enterprise value while reducing risk for shareholders by transitioning to Bitcoin.

The Bigger Picture: MicroStrategy’s Bitcoin Strategy

MicroStrategy’s ongoing Bitcoin strategy has positioned the company as the largest corporate holder of Bitcoin by a wide margin. With over 400,000 BTC on its balance sheet, the company has firmly committed itself to the cryptocurrency as both a store of value and an integral part of its long-term growth strategy. By raising funds through stock sales and other financial instruments, MicroStrategy has been able to continue its Bitcoin purchases without significantly affecting its core operations.

As Bitcoin’s price continues to fluctuate, MicroStrategy’s bet on the cryptocurrency has been met with both praise and criticism. However, with Bitcoin’s increasing mainstream adoption and its potential to act as a hedge against inflation, the company’s strategy is gaining attention from investors and tech leaders alike.

While many companies remain cautious about Bitcoin’s volatility, MicroStrategy’s bold investments have set a precedent for others in the corporate world. Whether or not other tech giants like Microsoft will follow MicroStrategy’s lead remains to be seen, but with Saylor’s vocal advocacy, it’s clear that the push for Bitcoin adoption in the corporate world is gaining momentum.

Conclusion

MicroStrategy’s aggressive Bitcoin strategy, including the recent $1.5 billion acquisition, highlights its belief in the long-term potential of Bitcoin as a store of value. As the company continues to increase its Bitcoin holdings, the broader tech and finance sectors are closely watching to see if other companies, such as Microsoft, will follow in its footsteps. With its significant investments and continued push for Bitcoin adoption, MicroStrategy is poised to remain a key player in the growing movement toward cryptocurrency integration in the corporate world.