MicroStrategy just announced a multi-million dollar investment of $4.600 billion in Bitcoin.
Michael Saylor’s business intelligence firm announced today that its Bitcoin holdings have risen to 331.200 BTC, following a massive $4.600 billion investment.
According to data shared by Saylor, his company sold more than 13,5 million shares of MSTR and used the capital obtained to finance the purchase of the new bitcoins.
With this significant investment, MicroStrategy acquired a total of 51.780 BTC, representing the largest Bitcoin purchase announced by the company to date.
At the time of writing, with the price of Bitcoin trading near $90.000, the amount of Bitcoin held by MicroStrategy is valued at approximately $29.800 billion.
MicroStrategy's Latest Bitcoin Purchase
MicroStrategy has been a staunch proponent of Bitcoin and has used its cash reserves to purchase the cryptocurrency. It has also launched other innovative ways to fund the recurring acquisition of additional bitcoins, such as reinvesting its profits, selling stock, and issuing debt through private offerings of bonds and convertible notes.
This time, the company resorted to selling shares to finance its recent BTC purchase.
MicroStrategy's massive Bitcoin acquisition is a reflection of the growing institutional interest In cryptocurrencies, it also highlights Confidence in Bitcoin as a safe haven asset against inflation and other economic risks.
Since the company began investing in Bitcoin in 2020, Saylor has demonstrated a strong belief in the reigning cryptocurrency, viewing it as a strategic solution to protect the value of corporate assets against inflation and fiat currency depreciation and to increase value for its shareholders.
Saylor's perspective on Bitcoin has guided his firm's investment decisions in the cryptocurrency world.
According to the Saylor Tracker website, MicroStrategy has made Bitcoin purchases in almost every month of 2024, with the most significant one being the one it announced today. As Saylor has said, his company has transformed into a Bitcoin treasury company, backed by its BTC reserves.
Source: Saylor Tracker
Despite the significant sale of MSTR, MicroStrategy shares rose 7% after the bitcoin purchase. Over the past year, the value of these shares has appreciated significantly, with an increase of more than 600%.
Companies follow MicroStrategy's Bitcoin strategy
MicroStrategy’s strategy of investing in Bitcoin has been a model for other companies, such as Metaplanet and Marathon Digital Holdings. So far, MicroStrategy has been transparent in its operations and has provided regular updates on its Bitcoin holdings, which has helped build trust among investors and demonstrated the viability of investing in the cryptocurrency as a long-term safe haven asset.
So, following MicroStrategy's strategy, Metaplatanet recently announced a $11,3 million bond offering to buy Bitcoin, while Marathon Digital Holdings, dedicated to BTC mining, announced a private offering of $700 million convertible notes to finance the purchase of the cryptocurrency.
In both cases, companies are looking to Bitcoin as a way to diversify their investments and take advantage of market opportunities.
