MicroStrategy Increases Its Bitcoin Holdings by $489 Billion

MicroStrategy's $489 million Bitcoin purchase brings its holdings to over 252,000 Bitcoin ($10 billion) to boost returns and hedge against inflation.

Deniz Saat

Sep 20, 2024 - 1 min read

MicroStrategy's Founder and Chairman, Michael Saylor, announced that the company has invested approximately $489 million to purchase an additional 7,420 Bitcoin.

MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 $BTC acquired for ~$9.9 billion at ~$39,266 per bitcoin. $MSTR https://t.co/JUtgztpzBu
— Michael Saylor⚡️ (@saylor) September 20, 2024

This acquisition increases MicroStrategy's total Bitcoin holdings to over 252,000 coins, acquired at an aggregate cost of $9.9 billion.

The current market value of these holdings exceeds $15 billion.

Since 2020, the company has pursued a Bitcoin-focused investment strategy, viewing the asset as a potential hedge against inflation and a store of value.

To finance these purchases, MicroStrategy has raised capital by issuing convertible senior notes, effectively borrowing funds from investors.

In recent efforts, it secured over $1 billion through such offerings, allocating a portion to acquire more Bitcoin.

MicroStrategy's large investment reflects its confidence in Bitcoin's potential resilience and value.

This approach has influenced some other publicly traded companies to consider similar strategies, increasing their exposure to Bitcoin on their balance sheets in anticipation of potential growth.