As a seasoned analyst with over two decades of experience in the financial markets, I find MicroStrategy’s aggressive Bitcoin investment strategy both intriguing and somewhat audacious. Their commitment to the cryptocurrency, even amidst its soaring prices, is reminiscent of the late-1990s tech bubble, when companies were rushing to invest in internet startups with little tangible value.
Instead of being hesitant to buy Bitcoin at its peak prices, MicroStrategy has chosen to increase their investment, showing a firm dedication towards cryptocurrency.
On November 11th, the business intelligence company-turned Bitcoin investor disclosed that they had invested approximately $2.03 billion in cash to acquire 27,200 Bitcoins. These coins were bought over a period of ten days from October 31st to November 10th, with an average price per Bitcoin (including fees and expenses) of around $74,463.
After making the recent acquisition, the company now possesses approximately 279,420 Bitcoins. At present market values, this amount is equivalent to around $23 billion.
Selling shares to buy more Bitcoin
As reported by MicroStrategy, they utilized the earnings from issuing and offloading their own shares to make Bitcoin acquisitions.
On August 1 and October 30, MicroStrategy disclosed that it entered into stock sale agreements with multiple entities. By November 10, the company had sold roughly 7.8 million shares, generating around $2 billion in revenue.
Additionally, the business revealed that their Bitcoin return rate, which is an essential indicator reflecting their Bitcoin procurement approach, was approximately 7.3% from October 1st to November 10th. So far this year, their Bitcoin return rate amounts to 26.4%.
In my analysis as an observer, I noticed that the company’s share price surged following Donald Trump’s win in the U.S. presidential election on November 5th. Specifically, MicroStrategy’s stock price skyrocketed by approximately 19.9% on November 8th, immediately after his victory was officially confirmed.
MicroStrategy’s Bitcoin ROI surpasses 100%
Simultaneously, the MicroStrategy Bitcoin portfolio monitor, known as “Saylor Tracker” (after the company’s executive chair, Michael Saylor), demonstrated that the company’s earnings from Bitcoin investments exceeded 100% on November 10.
The data analysis revealed that the company’s assets were over $20.5 billion prior to making their recent Bitcoin acquisition, which indicates a substantial value they already held.
According to BitcoinTreasuries data, the company made 42 purchases of Bitcoin at an average price of approximately $39,292 each, making it the largest corporate holder of Bitcoin. Marathon Digital and Riot platforms come in second and third place, with Bitcoin holdings worth around $2.1 billion and $840 million respectively.
Read More
- ZK PREDICTION. ZK cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- ETH PREDICTION. ETH cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- COMP PREDICTION. COMP cryptocurrency
2024-11-11 17:02