Microstrategy, a business intelligence firm, made a record purchase of 51,780 BTC, worth approximately $4.6 billion, over the last week.
According to the recent regulatory filing, Microstrategy – the tech company behind the advanced AI-powered business intelligence analytics solution Microstrategy One – now holds 331,200 BTC, equal to over $31 billion at the current price.
The company specialising in enterprise analytics software and services has become a prominent Bitcoin investor since 2020. The firm’s strategy is making the pioneer crypto its primary treasury reserve asset. The main goals of accumulating Bitcoin are to hedge against inflation and diversify its corporate treasury.
Before the record batch of 51,780 BTC crypto tokens acquired between Nov.11 and Nov.17, Microstrategy bought over 27,000 Bitcoin between Oct. 31 and Nov. 10 and made two large acquisitions in September.
Reportedly, the company sold around 13.6 million shares to fund the most recent Bitcoin purchase worth about $4.6 billion. As the purchase took place during the last week, it was the exact time BTC witnessed a meteoric rise.
The cryptocurrency reached a $75K price milestone immediately after the U.S. presidential election and kept growing ever since. Today, BTC trades at over $94K, raising expert discussions about a possible $100K record by the end of the year.
Microstrategy claims its BTC holdings have achieved a yield of 20.4% QTD and 41.8% YTD. The average acquisition cost across all its bitcoin holdings is estimated at almost $50K per bitcoin, which means the company’s cumulative investment of approximately $16.5 billion has almost doubled now. The company’s shares have also seen growth of 9.7% to $373.96 in recent trading and more than 445% year-to-date.
MicroStrategy is already taking steps to secure additional funds for its Bitcoin investments. On Monday, the company announced plans to issue $1.75 billion in convertible senior notes set to mature in 2029. A portion of the funds raised from this offering will be allocated toward acquiring more Bitcoin. The offering is targeted at institutional investors under specific regulatory exemptions. The notes can be converted into cash, stock, or a combination of both, based on certain conditions.
