MicroStrategy Makes Record $4.6 Billion Bitcoin Purchase, Largest Yet

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Business intelligence firm MicroStrategy has ramped up its Bitcoin (BTC) investment following President-elect Donald Trump’s victory in the presidential election. This pivotal moment on November 5 has provided a catalyst for the broader crypto market, further encouraging investment in digital assets. Bitcoin Holdings To Over $29 Billion

Led by Bitcoin advocate Michael Saylor, MicroStrategy disclosed on Monday that it has acquired approximately 51,780 Bitcoin for around $4.6 billion. This acquisition marks the largest purchaseby the company since it began its Bitcoin buying strategy more than four years ago. 

According to a filingwith the US Securities and Exchange Commission, the tokens were purchased between November 11 and November 17. With this latest acquisition, MicroStrategy’s total Bitcoin holdings now exceed $29 billion or 331,200 BTC. Related Reading Dogecoin Breaking Out Of Falling Wedge Pattern – Analyst Reveals Target 5 hours ago

Saylor’s journey into Bitcoin began in 2020 as a strategyto hedge against inflation. Initially funded through cash reserves, the company has since pivoted to using proceeds from stock issuances and convertible debt sales to enhance its purchasing power in the cryptocurrency market. 

Michael Saylor has also reaffirmedhis commitment to this strategy. He aims to raise $42 billion over the next three years to further strengthen the company’s BTC portfolio and transform Microstrategy into a leading crypto bank.  BTC Yield Rises To 20.4% Amid Market Optimism

Recent datafrom South Korea-based crypto analytics firm CryptoQuant highlights the impact of MicroStrategy’s latest purchase on its Bitcoin statistics: BTC Holdings: Increased from 279,420 BTC to 331,200 BTC MSTR Realized Price: Rose from $42,692 to $49,874 MSTR Market Value to Realized Value (MVRV): Adjusted from 2.12 to 1.80 Percentage of BTC Owned by MicroStrategy: Increased from 1.412% to 1.674%

This latest transaction follows closely on the heels of another significant acquisition on November 11, during which Saylor noted that the company’s treasury operations had yielded an 7.3% in Bitcoin, translating to a net benefit of approximately 18,410 BTC for shareholders.

However, with Monday’s announcement and the notable uptrend in the Bitcoin price over the past two weeks, Saylor revealedthat these metrics have risen to a BTC yield of 20.4% and a net benefit to shareholders of 51,470 BTC.  Related Reading Bitcoin Miners Sold Over 3,000 BTC In The Past 48 Hours – Consolidation Phase Ahead? 22 hours ago

The correlation between MicroStrategy’s stock(MSTR) and Bitcoin’s price has also been particularly noteworthy in recent weeks. Following Bitcoin’s record high of $93,300 on November 13, MicroStrategy’s stock also reached an all-time high of $383. 

Yet, as the leading digital asset of the market retraced to around $90,650—a 9% increase over the past week—MSTR’s share price also declined to approximately $359 over the past weekend, underscoring the strong relationship between the cryptocurrency and the firm’s stock performance. The daily chart shows BTC’s price consolidation above the $90,000 mark for the past 48 hours. Source: BTCUSDT on TradingView.com

Featured image from DALL-E, chart from TradingView.com