Posted: November 19, 2024

• MicroStrategy boosted its Bitcoin holdings to 331,200 BTC, worth $30 billion, leading to a stock surge.
• This coincided with MicroStrategy’s acquisitions under its ambitious “21/21 plan” and Bitcoin hitting $90K. 

MicroStrategy Inc. has once again made headlines with its aggressive Bitcoin [BTC] acquisition strategy. The firm purchased $4.6 billion worth of Bitcoin.

In alignment with its commitment to expanding BTC holdings, the enterprise software giant acquired approximately 51,780 Bitcoin between November 11th and 17th, according to a recent SEC filing.

This latest purchase follows acquisitions in October and September, bringing the company’s total BTC holdings to an impressive $30 billion.

MicroStrategy’s founder, Michael Saylor, also shared his thoughts on X (formerly Twitter), stating, 

This led to MicroStrategy’s stock (MSTR) surging by approximately 13% on 18th November, hitting a record closing high.

Impact on MicroStrategy’s stock price

This remarkable performance highlights the company’s 2024 success, with MSTR shares up over 500% year-to-date. This significantly outpaces Microsoft’s 11% growth during the same period, according to Yahoo Finance.

Currently trading at $384.79 per Google Finance, MicroStrategy’s aggressive BTC strategy is yielding substantial returns. This includes stock appreciation and the rising value of its cryptocurrency holdings.

Additionally, the company plans to raise $1.75 billion through a private offering of zero-interest convertible senior notes. These notes will mature in December 2029, reinforcing its commitment to expanding its Bitcoin investments.

Community reaction

Observing the firm’s significant strides, an X user remarked,

“Big moves! MicroStrategy’s playing chess while others are stuck on checkers.” 

However, critics like Peter Schiff seized the opportunity to weigh in, stating,

Despite facing criticism from figures like Schiff, MicroStrategy has solidified its position as the largest institutional Bitcoin holder, with an impressive 331,200 BTC acquired at a cumulative cost of $16.5 billion—significantly below the current market value.

This milestone comes as Bitcoin trades at unprecedented highs, surpassing $90,000 following the U.S. election.

As of the latest update, BTC was valued at $91,767.56, reflecting a minor 0.03% dip in the past 24 hours but maintaining strong weekly and monthly gains of 2.72% and 34.19%, respectively, as per CoinMarketCap.

MicroStrategy’s roadmap ahead

MicroStrategy’s latest Bitcoin acquisition was funded by selling approximately 13.6 million company shares. This move aligned with its ambitious “21/21 plan.”

The strategy aims to raise $42 billion through equity and fixed-income offerings over three years. This reflects the company’s commitment to expanding its BTC holdings.

Since adopting Bitcoin as a core reserve asset in August 2020, MicroStrategy has used it to hedge against inflation and diversify its treasury.

Its open-source BTC reserve strategy has inspired other public companies, such as Marathon Digital Holdings and Semler Scientific, to adopt similar approaches, signaling a growing trend in corporate Bitcoin investment.