MicroStrategy Expands Bitcoin Holdings with $1.5 Billion Purchase

Software company MicroStrategy has made another significant investment in Bitcoin, marking its fourth purchase in just four weeks. On Monday, the company announced that it acquired approximately 15,400 Bitcoin for $1.5 billion between November 25 and December 1. This purchase was made at an average price of about $95,976 per Bitcoin.

With this latest acquisition, MicroStrategy's total Bitcoin holdings have now reached 402,100 BTC, valued at around $39 billion at current market prices. Bitcoin is trading around $97,000 according to CoinGecko.

MicroStrategy has transformed itself from a conventional software firm into a self-proclaimed “Bitcoin development company.” By acquiring Bitcoin, the company allows investors to gain exposure to the cryptocurrency through its shares listed on the Nasdaq exchange.

The idea to invest heavily in Bitcoin originated from Michael Saylor, MicroStrategy's co-founder and Executive Chairman, back in 2020. The company initially purchased $250 million worth of Bitcoin in August of that year. Saylor has consistently argued that Bitcoin represents an optimal way for companies to preserve and grow their capital, asserting that it is a superior store of value due to its scarcity.

Saylor often states, "Whoever gets the most Bitcoin wins," highlighting the competitive edge he believes can be gained through significant holdings of the cryptocurrency.

Since the 2020 investment, MicroStrategy has made regular purchases of Bitcoin, but this year has seen an acceleration in acquiring more of the asset as its price has surged. The company has announced plans to raise $42 billion in additional funding to continue its purchasing spree of Bitcoin.

Since MicroStrategy began investing in Bitcoin, its stock price has risen remarkably. The shares traded below $15 before the Bitcoin investments began and have now climbed to about $389, recently reaching an all-time high.

This ongoing strategy of purchasing Bitcoin aligns with continued interest in the cryptocurrency, potentially marking MicroStrategy as a leader in this investment landscape.

MicroStrategy, Bitcoin, Investment