MicroStrategy’s Bitcoin Holdings Reach $24B with Latest Acquisition

MicroStrategy announced an additional Bitcoin acquisition of 27,200 BTC worth approximately $2.03 billion. With an average purchase price of $74,463 per Bitcoin, the enterprise software company now holds a total of 279,420 BTC worth $24.83 billion, making it the largest corporate holder of Bitcoin. 

With this latest purchase, CEO Michael Saylor reaffirms the company's commitment to Bitcoin as its primary reserve asset, a strategy he initiated in 2020 to guard against inflation and currency depreciation.

This latest acquisition was funded through sales of company stock, a financing strategy that has allowed MicroStrategy to continue accumulating Bitcoin without depleting its cash reserves. By selling shares, MicroStrategy avoids using debt or impacting its operational cash flow, which allows it to buy Bitcoin without straining its finances. 

The company’s shares have seen a steady rise since 2020, attributed largely to the rise in Bitcoin’s value and MicroStrategy’s role as a significant corporate Bitcoin holder.

Since embracing Bitcoin, MicroStrategy’s stock has outperformed major U.S. equities, even AI-driven tech stocks like Nvidia. MicroStrategy’s MSTR gained 396% year-to-date. The company’s BTC holdings now yield 7.4% this quarter and over 26% for the year.

MicroStrategy’s 21/21 Plan

Few weeks before the latest acquisition, MicroStrategy launched an ambitious plan called the “21/21 Plan,” aiming to raise $42 billion over the next three years to further increase its Bitcoin holdings.  As part of the company's strategy, it plans to raise $21 billion in equity and $21 billion in fixed income securities.

CEO Michael Saylor and President Phong Le believe the additional capital will serve as a critical asset in reinforcing the company's position in the cryptocurrency space.