MicroStrategy unveiled a $5.4 billion Bitcoin purchase Monday, lifting its total holdings to 386,700 BTC—or $37.6 billion worth—as the company topped off its corporate coffers for the third time this month. It's the firm's largest-ever Bitcoin purchase disclosure, both in terms of BTC total and U.S. dollar value.
The recent purchase run, which took place over the past week, represented MicroStrategy’s largest Bitcoin acquisition since the Tysons Corner, Virginia-based firm started accumulating Bitcoin in August 2020 under the leadership of Executive Chairman Michael Saylor.
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM
— Michael Saylor⚡️ (@saylor) November 25, 2024
In a filing, MicroStrategy said that the $5.4 billion in Bitcoin was purchased using the proceeds of convertible note offerings and the sales of its shares. Averaging around $97,862 per Bitcoin purchased, the company said it had obtained around 55,500 Bitcoin using only cash.
MicroStrategy’s stock price had increased 4% during pre-market trading, rising to $439 ahead of Monday’s opening bell. Not long after, however, MicroStrategy’s stock price was down 1% to $418 as investors digested the Bitcoin-buying firm’s latest purchase.
Over the past month, MicroStrategy shares have rallied 80%, as the so-called Bitcoin treasury company’s BTC purchases have accelerated at a record pace. As the price of Bitcoin has staged a record-setting climb, MicroStrategy shares have surged 500% year-to-date.
Strategy Now Holds $71 Billion in Bitcoin—These Are Its Biggest Buys
Software firm turned Bitcoin treasury company Strategy has been buying Bitcoin for more than five years, pioneering the growing trend of publicly traded firms that are adding cryptocurrencies to their balance sheets. What started as a way to "maximize long-term value for shareholders” has transformed into an industry-shifting paradigm that has been further fueled by greater entwinement of traditional financial markets and crypto. Along the way, Strategy has accumulated 607,770 BTC, or nearly 2....
This month, MicroStrategy has purchased around 134,480 Bitcoin, worth $13 billion, according to Bitcoin Treasuries. Prior to that, it had taken MicroStrategy three years to accumulate an equivalent sum of Bitcoin across dozens of purchases since November 2021.
Even though MicroStrategy’s stock price has been on a hot streak, breaking a 25-year high earlier this month, some investors believe the company’s valuation has far exceeded that of its Bitcoin holdings. Last week, the influential investment firm Citron Research disclosed a short position in the stock, saying its valuation had become “completely detached” from reality.
Leveraging its shares and debt to effectively become a leveraged bet on Bitcoin, the company’s stock price currently trades at a hefty premium compared to its Bitcoin holdings. That ratio, also referred to as its NAV Premium, clocked in at 2.5x on Monday, according to MSTR Tracker.
Alongside MicroStrategy’s record-setting valuation last week, the company was one of the most traded stocks on Wall Street, trading only behind Nvidia on the Nasdaq in terms of dollar value. Meanwhile, other firms are continuing to take a page out of the Bitcoin buyer’s playbook.
MicroStrategy Stock Sinks 16% as Bitcoin Nears $100K—Is It Too Hot to Handle?
MicroStrategy shares fell 16% to $397.28 Thursday, following statements from influential investment firm Citron Research that it placed a short position against the company while maintaining a long position in Bitcoin. The disclosure reveals mounting concerns about the company’s stock being overvalued due to what some perceive as an overly excessive company valuation. Citron Research claimed Bitcoin investing has been "easier than ever," citing ETFs and stocks available on trading platforms Coin...
Mirroring the format for MicroStrategy’s Bitcoin purchase disclosures, the medical device manufacturer Semler Scientific announced that it had purchased 297 Bitcoin for around $30 million. That lifted the firm’s total Bitcoin holdings to 1,570 Bitcoin, worth $118 million.
The Santa Clara, California-based firm began purchasing Bitcoin in May, beginning with an allocation of 581 Bitcoin, according to Bitcoin Treasuries. Still, its Bitcoin holdings currently represent around 0.4% of MicroStrategy’s trove in terms of its dollar value.
Editor's note: This story was updated after publication with additional details.
Edited by Andrew Hayward
