Key Highlights
- MicroStrategy purchased 21,550 BTC last week, funded by a $2.13 billion share sale.
- The company now holds 423,650 BTC (worth ~$41.5 billion), representing 2% of Bitcoin’s total supply.
- Bitcoin miner Riot Platforms announced a $500 million convertible note to expand its BTC holdings, mirroring MicroStrategy’s strategy.
- Bitcoin’s price volatility: Dropped below $98,000** recently but surged past **$100,000 post-Trump’s re-election amid expectations of a crypto-friendly regulatory environment.
MicroStrategy’s Aggressive Bitcoin Accumulation
MicroStrategy (MSTR) continues to dominate as the largest corporate holder of Bitcoin, with its latest $2.1 billion purchase** bringing its total holdings to **423,650 BTC**. The acquisition was funded through a **share sale**, part of its broader **$42 billion funding plan to buy BTC via equity and convertible notes.
Purchase Details:
- Average price per BTC: $98,783
- Funding method: $2.13 billion raised from stock issuance
- Current BTC value: ~$41.5 billion (despite a 4% dip in MSTR stock post-purchase)
Corporate Bitcoin Adoption Trend
Publicly traded companies are increasingly adding Bitcoin to their balance sheets, inspired by MicroStrategy’s strategy. Notable examples include:
Riot Platforms (RIOT)
- Announced a $500 million convertible note offering to buy more BTC.
- Marathon Holdings (MARA)
- Semler Scientific (SMLR)
These moves signal growing institutional confidence in Bitcoin as a long-term store of value.
Bitcoin Market Performance
- Recent dip: BTC fell below $98,000, impacting MSTR’s stock price.
- 2024 rally: BTC surged from $70,000** to **$100,000+ post-Trump’s re-election, driven by optimism around pro-crypto policies.
👉 Why institutional investors are betting big on Bitcoin
FAQs
Why does MicroStrategy keep buying Bitcoin?
MicroStrategy views Bitcoin as a hedge against inflation and a superior alternative to cash reserves. CEO Michael Saylor advocates for BTC as “digital gold.”
How does MicroStrategy fund its Bitcoin purchases?
The company raises capital through stock sales and convertible debt offerings, leveraging its equity to buy BTC.
What’s the long-term goal of holding 423,650 BTC?
MicroStrategy aims to maximize shareholder value by holding BTC as its primary treasury asset, betting on its appreciation over time.
👉 Learn how Bitcoin’s scarcity drives its value
Final Thoughts
MicroStrategy’s relentless BTC acquisitions highlight its bullish stance on cryptocurrency, setting a precedent for other public companies. With Bitcoin’s price fluctuating near all-time highs, corporate adoption could further fuel its mainstream acceptance.