MicroStrategy Buys Bitcoin, Acquiring Nearly 2% of All BTC

This acquisition brings its total Bitcoin holdings to 402,100 tokens, valued at approximately $38.2 billion at the current BTC price of $95,000. Across all purchases, MicroStrategy’s average acquisition cost sits at $58,263 per Bitcoin.

Source: X

This latest acquisition was financed through share sales under the company’s existing at-the-market program. Executive Chairman Michael Saylor hinted at the announcement in a tweet on Sunday, building anticipation for the Monday reveal.

Source: X

With 402,100 BTC, MicroStrategy now controls over 1.9% of the 21 million Bitcoin supply cap. The company’s aggressive Bitcoin strategy has solidified its position as a pivotal player in the cryptocurrency space.

As the Nasdaq 100 undergoes a rebalancing process, speculation has arisen about whether MicroStrategy will secure a spot in the reshuffled index. The decision is expected to be announced on December 13.

Adding to the intrigue, Saylor disclosed on Sunday that he had presented to Microsoft’s (MSFT) board, advocating for Bitcoin as a treasury diversification strategy. He argued that Microsoft’s current financial strategy—focused on dividends and stock buybacks—has weakened its position. He highlighted that Microsoft had returned $200 billion in capital over the past five years, which, if redirected into Bitcoin, could have generated extraordinary gains given BTC’s 1,200% growth in the same period.

Saylor also pointed out that despite being only 2.5% the size of Microsoft, MicroStrategy’s average daily trading volume ($22 billion) surpasses Microsoft’s ($9.7 billion). He argued that Microsoft’s bond-heavy treasury approach undermines its market liquidity and potential for outperforming competitors.

Bitcoin mining firm MARA Holdings (MARA) has similarly adopted an aggressive Bitcoin accumulation strategy. Between October 1 and November 30, MARA purchased 6,484 BTC for $618.3 million, at an average price of $95,352 per token. As of November 30, MARA holds 34,959 BTC, valued at $3.3 billion.

To sustain its buying spree, MARA announced a $700 million private offering of zero-coupon convertible senior notes due 2031. The proceeds will fund further Bitcoin acquisitions and repurchase existing notes due in 2026.

Source: X

MicroStrategy’s bold moves have driven a 450% year-to-date increase in its stock price, with shares rising 1.23% on Monday. Meanwhile, MARA continues to emulate MicroStrategy’s model, solidifying its role as a key player in Bitcoin adoption within the capital markets.

Both companies’ actions underscore the growing trend of leveraging Bitcoin as a strategic financial asset, further entrenching cryptocurrency in traditional financial frameworks.