MicroStrategy Makes Largest-Ever Bitcoin Buy, Adding $5.4 Billion Worth

By Matt Brienen

Published: 2024-11-25T22:30:30+00:00

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.

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.