Bitcoin: MicroStrategy has bought in for more than $2 billion

MicroStrategy, the Bitcoin-based company, has struck again. In a press release today, the company announced that it had purchased a further 27,200 Bitcoin for 2.03 billion US dollars. This results in a purchase price of 74,463 US dollars per BTC - well below the current Bitcoin price of well over 80,000 US dollars.

MicroStrategy raised the money for the latest acquisition through the issue of new shares announced as part of the "21/21 plan". Despite the "dilution" of already outstanding company shares, the stock corporation continues to steadily increase the BTC per share ratio - by 7.3 percent since November 1 alone and by 26.4 percent since the beginning of the year.

As a result of the latest purchase, the software company founded by Michael Saylor now holds 279,420 BTC. MicroStrategy's holdings therefore correspond to around 1.33 percent of all Bitcoin ever in existence.

MicroStrategy began investing in Bitcoin in August 2020. Since then, the publicly traded company has managed to build up a portfolio of 279,420 BTC through various capital procurement methods, which is currently worth more than 23 billion US dollars. MicroStrategy has invested a total of 11.9 billion US dollars in Bitcoin, with an average purchase price of 42,692 US dollars per unit. As a result, the company is currently sitting on an unrealized profit of more than 11 billion US dollars.

Since the start of the Bitcoin strategy, the share price has increased more than twentyfold, meaning that $MSTR has outperformed every company in the US S&P 500 index during this period. The market capitalization, which currently stands at more than USD 60 billion, has even increased by a factor of 50 at the same time. The difference to the performance of the stock is due to the fact that MicroStrategy has issued some new shares.

The success of the software company founded by Michael Saylor is unparalleled. However, when the price of Bitcoin - and consequently MicroStrategy shares - took a beating in the Bitcoin bear market of 2022, the unconventional strategy was ridiculed. On August 3, 2022, for example, the Wall Street Journal ran the headline: "Michael Saylor Bet Billions on Bitcoin and Lost". Saylor posted this headline on 𝕏 a few days ago and humorously noted that he was is still betting on Bitcoin. It should be clear by now that there can be no question of "losing".

MicroStrategy is by far the company with the largest Bitcoin holdings - although heavyweights such as payment service provider Block and Tesla also hold BTC on their balance sheets. But Saylor still has a long way to go: the "21/21 plan" announced as part of the last quarterly figures envisages MicroStrategy buying a total of USD 42 billion in Bitcoin over the next three years - USD 40 billion is still outstanding. If the strategy continues to work out so well, the business intelligence software company could one day be one of the big players.