MicroStrategy, the business intelligence firm now known for its deep dive into cryptocurrency investment, has again made a significant splash in the Bitcoin pool. The company recently announced the purchase of 27,200 Bitcoins, shelling out approximately $2.03 billion in cash to do so. This move brings their total Bitcoin holdings to a whopping 279,420 BTC, equivalent to nearly $23 billion.
MicroStrategy took an interesting approach to fund its latest purchase. It utilized proceeds from the sale of its own shares, successfully selling approximately 7.8 million shares to net around $2 billion. This strategy underscores the company’s impressive commitment to its investment diversification towards cryptocurrency.
Over a short span, from October 1 to November 10, MicroStrategy’s Bitcoin yield – a measure of the success of its investment strategy – stood at 7.3%. This puts its year-to-date yield at an impressive 26.4%. An increase in the company’s share price also coincided with the U.S presidential election, with a rise of 19.9% following the victory of Donald Trump.
Notably, their return on Bitcoin investments surpassed the 100% mark, as indicated by the company’s “Saylor Tracker”, named after its executive chairman, Michael Saylor. This indicates a doubling of the company’s investment value in Bitcoin in real time.
MicroStrategy’s bold and consistent investment in Bitcoin further solidifies its position as the largest corporate holder of Bitcoin, out-shining other contenders like Marathon Digital and Riot platforms, which hold Bitcoin worth about $2.1 billion and $840 million respectively. This strategy signals a huge vote of confidence in the future of Bitcoin from a major player.