Key Points
- Software developer MicroStrategy has increased its Bitcoin holdings to over 331,200 BTC.
- The firm has spent $16.5 billion on its Bitcoin strategy, holding over $13 billion in unrealized profits.
MicroStrategy, a software developer, has escalated its aggressive Bitcoin buying strategy under the leadership of Michael Saylor. The company’s Bitcoin holdings now exceed 331,200 BTC.
The company’s latest acquisition of Bitcoin (BTC), amounting to $4.6 billion, has doubled the previous acquisition disclosed just a week ago. This acquisition was confirmed by Michael Saylor, the executive chairman and founder of MicroStrategy.
MicroStrategy’s Bitcoin Acquisition Strategy
The average purchase price for this acquisition was slightly below 5% of Bitcoin’s all-time high of $93,477. As of November 18, the company has invested a total of $16.5 billion in Bitcoin and holds over $13 billion in unrealized profits from its crypto holdings.
Saylor introduced this Bitcoin purchasing strategy in 2020, following the global pandemic. Since then, MicroStrategy has emerged as the largest corporate holder of Bitcoin, with nearly $30 billion worth of the cryptocurrency.
Future Plans and Market Influence
MicroStrategy’s Bitcoin roadmap also includes one of Wall Street’s most ambitious capital-raising exercises. The company plans to raise $42 billion to purchase more Bitcoin in the next three years. The company has already used loans, debt, and equity sales to fund its ongoing Bitcoin buying cycle.
With four years of consistent purchases, MicroStrategy has surpassed other private entities and even countries like the United States in Bitcoin holdings. This has influenced more firms to adopt the strategy of adding Bitcoin to their balance sheets and portfolios.
In May, Semler Scientific revealed its strategy for a Bitcoin Treasury. Genius Group, an artificial intelligence startup, made its first Bitcoin purchase last week. Thumzup Media Corp also joined the trend in November. Tokyo-based Metaplanet, which holds over 1,000 Bitcoin, recently announced plans to increase its Bitcoin balance.