While some investors may be hesitant to buy into the recent surge of Bitcoin (BTC), MicroStrategy has shown unwavering commitment to the cryptocurrency. The business intelligence firm, turned BTC investor, announced on November 11th that it had purchased an additional 27,200 Bitcoin for approximately $2.03 billion in cash.
A Significant Investment
The latest purchase was made between October 31st and November 10th, with an average price of $74,463 per BTC, including fees and expenses. This marks a significant investment for MicroStrategy, bringing its total holdings to 279,420 BTC, valued at nearly $23 billion at current market prices.
Using Share Sales to Fund the Purchase
According to MicroStrategy, the proceeds from issuing and selling shares were used to fund this latest purchase. The company reported entering into sales agreements with various companies on August 1st and October 30th. By November 10th, it had sold approximately 7.8 million shares for about $2 billion.
A Strong Track Record
MicroStrategy’s commitment to Bitcoin is evident in its impressive track record. The company disclosed that its BTC yield – a key performance metric assessing its Bitcoin acquisition strategy – was 7.3% from October 1st to November 10th. For the year-to-date, its BTC yield stands at 26.4%.
Share Price Surge
The news follows the company’s share price surge following Donald Trump’s victory in the United States presidential election on November 5th. On November 8th, MicroStrategy’s stock price had shot up by 19.9% after Trump’s victory was confirmed.
A Strong Return on Investment
Meanwhile, the MicroStrategy Bitcoin portfolio tracker, ‘Saylor Tracker’ – named after the company’s executive chairman, Michael Saylor – shows that the firm’s return on investments in BTC has surpassed 100% on November 10th. The data tracker indicates that the company’s holdings at the time had already surpassed $20.5 billion even before adding the latest BTC purchase.
A Leader in Corporate Bitcoin Holdings
Bitcoin Treasuries data reveals that MicroStrategy has bought BTC 42 times, with an average price of $39,292. The firm remains the largest corporate BTC holder, followed by Marathon Digital and Riot platforms, which hold BTC worth about $2.1 billion and $840 million, respectively.
A Testament to Bitcoin’s Value
MicroStrategy’s commitment to Bitcoin is a testament to its value as a store of wealth and a hedge against inflation. As more companies invest in the cryptocurrency, it becomes increasingly clear that Bitcoin is becoming an integral part of many investors’ portfolios.
The Path Forward for MicroStrategy
As MicroStrategy continues to accumulate more BTC, it will be interesting to see how the company’s strategy unfolds. Will it continue to use share sales to fund its purchases? How will it navigate any potential market volatility?
A Conclusion
MicroStrategy’s commitment to Bitcoin is a shining example of the cryptocurrency’s growing appeal among investors. As the landscape continues to evolve, one thing is clear: Bitcoin is here to stay.
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About the Author
[Your Name] is a finance journalist with a passion for cryptocurrency. With years of experience in covering the financial markets, they bring a unique perspective to the world of Bitcoin and beyond.
Disclaimer
This article is for informational purposes only and should not be considered as investment advice. Always do your own research before making any investment decisions.
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