Key Points
- MicroStrategy has purchased an additional 15,400 Bitcoins, bringing their total holdings to 402,100 BTC.
- Companies like Metaplanet and Marathon Digital have adopted similar strategies to finance Bitcoin acquisitions.
Michael Saylor recently disclosed a substantial Bitcoin acquisition by MicroStrategy.
The announcement came not long after Saylor promoted the cryptocurrency to Microsoft’s Board of Directors.
MicroStrategy’s Bitcoin Acquisition
On December 2, Saylor confirmed that MicroStrategy had purchased 15,400 Bitcoin for $1.5 billion.
This acquisition, with an average purchase price of $95,976 per coin, increased MicroStrategy’s Bitcoin holdings to approximately 402,100 BTC.
At the time of the announcement, these were valued at over $38 billion, with Bitcoin trading around $95,194.
So far, MicroStrategy has invested $23.4 billion in Bitcoin at an average cost of $58,263 per coin.
Since the company started accumulating Bitcoin in 2020, its holdings have resulted in over $15 billion in unrealized gains.
MicroStrategy’s Bitcoin Strategy
MicroStrategy has funded its Bitcoin purchases through share sales and securities issuance.
The company has introduced the “BTC Yield” metric to track the growth of Bitcoin holdings relative to share dilution.
According to Saylor, MicroStrategy’s BTC Yield is at 38.7% for the quarter and 63.3% for the year.
MicroStrategy’s strategy has influenced other companies, such as Tokyo-based Metaplanet and Bitcoin miner Marathon Digital.
Both companies have adopted similar funding strategies for their Bitcoin acquisitions.
Metaplanet has even announced plans to reward shareholders with Bitcoin for holding its stock.
Just before Saylor’s announcement, Marathon proposed a new $700 million private convertible note offering with a $105 million extension option.
Marathon stated that the proceeds would primarily be used to purchase more Bitcoin and initiate note buybacks, similar to previous BTC-focused capital raises.
Saylor, a strong supporter of Bitcoin, has continued to advocate for its adoption.
Over a recent weekend, he pitched Bitcoin to Microsoft’s Board of Directors, reinforcing his role as a leading proponent of corporate cryptocurrency investment.
