MicroStrategy has made another large purchase of Bitcoin, increasing its position as the biggest company holding this currency. Between August 6 and September 12, the company spent $1.11 billion to buy 18,300 Bitcoins. With this new purchase, the company now holds Bitcoin worth $9.45 billion, showing how much they are committed to Bitcoin.
Since 2020, MicroStrategy has focused more on Bitcoin instead of its software business. The company’s leader, Michael Saylor, believes Bitcoin is a safer way to protect against inflation and holds more value than regular money. By the end of 2023, the company owned 190,000 Bitcoins and said it plans to keep buying more.
In July, to attract more people, MicroStrategy decided to split its stock 10-for-1. This change was made to bring in smaller buyers by lowering the price of a single share. After this, the company bought 18,300 more Bitcoins at an average price of $60,408 each. Bitcoin prices were steady during that time, so the company was able to increase its holdings without spending too much.
As of September 12, 2024, MicroStrategy and its related companies hold around 244,800 Bitcoins, worth about $9.45 billion. On average, they paid $38,585 for each Bitcoin, including fees and other costs. Since Bitcoin’s price is now higher, MicroStrategy’s earlier purchases have turned out to be profitable.
Related: U.S Bitcoin ETFs See Net Inflows Again
Why Microstrategy Invested in Bitcoin
Bitcoin has been accepted more over time, especially after the U.S. Securities and Exchange Commission (SEC) approved Bitcoin funds in January 2024. This approval gave Bitcoin more trust among larger money managers. Support from big financial companies on Wall Street has also helped Bitcoin become more accepted.
MicroStrategy’s large Bitcoin purchases have increased both its Bitcoin holdings and its stock price. The stock price often changes with Bitcoin’s price, and some people see MicroStrategy’s stock as a way to invest in Bitcoin without owning the currency directly. In 2024, the company’s stock has more than doubled, while Bitcoin has risen by about 31% so far this year.
By continuing to buy Bitcoin, MicroStrategy has become one of the top companies using cryptocurrency. This approach has made the company known to people interested in both regular and cryptocurrency investments. As Bitcoin continues to gain more acceptance and its price remains uncertain, MicroStrategy’s bold buying choices are likely to keep it in the public eye for a long time.
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