MicroStrategy has increased its Bitcoin investment, acquiring 18.300 new BTC for $1.100 billion.
The prominent American business intelligence firm led by Michael Saylor, Microstrategy, has made one of its most significant acquisitions in the cryptocurrency space.
Recently, the company expressed its unwavering commitment to Bitcoin, announcing a new acquisition of the cryptocurrency for a total of $1.100 billion. This latest purchase, carried out in the last month, reinforces MicroStrategy's position as one of the largest holders of Bitcoin in the corporate world.
$1.100 Billion in Bitcoin: A Strategic Investment in the Leading Cryptocurrency
MicroStrategy's recent Bitcoin purchase stands out for its magnitude and the context in which it is made. Currently, the crypto market is facing an environment of uncertainty and volatility, where price fluctuations of crypto assets have generated a feeling of fear in investors. According to the Crypto Fear & Greed Index, the market is currently at a score of 32, indicative of this feeling of fear and uncertainty.
However, the decision by MicroStrategy and its president to invest $1.100 billion in Bitcoin highlights a confidence in the cryptocurrency's long-term potential. This new BTC acquisition aligns with Michael Saylor's view that Bitcoin is a store of value superior to cash and other existing assets, especially in times of economic uncertainty.
Since MicroStrategy began its journey into the cryptocurrency world in 2020, the company has taken an aggressive approach to accumulating Bitcoin. With this latest acquisition, MicroStrategy has increased its total holdings to 244.800 bitcoins, representing a cumulative investment of approximately $9.450 billion.
MicroStrategy owns 1,16% of the total Bitcoin supply
As of September 13, MicroStrategy holds approximately 1,16% of the total Bitcoin supply on the market. This significant percentage of the 21 million BTC that will ever exist not only speaks to the magnitude of the company’s investments, but also the influence it can have on the cryptocurrency market. As more institutions become interested in Bitcoin, MicroStrategy’s position as one of the largest BTC holders could lead to increased interest and trust in the leading cryptocurrency.
Source: Bitcoin Treasuries
Over the past 4 years, Michael Saylor’s strategy on Bitcoin has been clear: use the most capitalized cryptocurrency on the market as a reserve asset, moving away from fiat money and traditional assets that may not offer the same protection against inflation and depreciation as cryptocurrency.
Saylor's strategic approach has been supported by Bitcoin's market performance in recent years, which has seen considerable appreciation. Despite the volatility, the value of MicroStrategy's current Bitcoin holding is estimated at over $14.200 billion, representing a an unrealized gain of more than $4.700 billion for the American company.
MicroStrategy's financing strategy
To fund its recurring Bitcoin purchases, MicroStrategy has used a variety of strategies, including issuing equity and convertible notes. This has allowed the company to continue accumulating digital assets without compromising its operating cash flow. In 2024, MicroStrategy reported that it had raised $700 million through the sale of senior convertible notes to fund its BTC purchases, reflecting a continued commitment to its crypto investment strategy.
As the cryptocurrency market evolves, MicroStrategy’s ability to effectively fund its acquisitions will be crucial. The company has proven resilient, adapting to changing market conditions and taking advantage of opportunities to expand its Bitcoin holdings.
On the other hand, MicroStrategy's decision to continue accumulating Bitcoin has had important implications on the market, beyond its own balance sheets. The company has been influencing the perception of the market and other companies about the leading cryptocurrency. For example, following its strategy, Metaplanet has already acquired almost 400 BTC, paving the way for greater adoption of Bitcoin as a legitimate asset.
