Business intelligence company MicroStrategy has increased its investment in bitcoin (btc) following President-elect Donald Trump's victory in the presidential election. This pivotal moment on November 5 has provided a catalyst for the broader crypto market, further encouraging investment in digital assets.
bitcoin Holdings Surpass $29 Billion
Led by bitcoin advocate Michael Saylor, MicroStrategy revealed on Monday that it had acquired approximately 51,780 bitcoin for around $4.6 billion. This acquisition marks the largest purchase made by the company since it began its bitcoin purchasing strategy more than four years ago.
According to a <a target="_blank" href="https://www.microstrategy.com/press/microstrategy-acquires-51780-btc-and-achieves-btc-yield-of-20-qtd-and-41-ytd-now-holds-331200-btc” target=”_blank”>presentation With the US Securities and Exchange Commission, the tokens were purchased between November 11 and 17. With this latest acquisition, MicroStrategy's total bitcoin holdings now exceed $29 billion or 331,200 btc.
Saylor's journey into bitcoin began in 2020 as a strategy to hedge against inflation. Initially funded through cash reserves, the company has since shifted to using proceeds from the issuance of shares and the sale of convertible debt to enhance its purchasing power in the cryptocurrency market.
Michael Saylor also has <a target="_blank" href="https://bitcoinist.com/michael-saylor-microstrategy-leading-bitcoin-bank/” target=”_blank”>reaffirmed their commitment to this strategy. It aims to raise $42 billion over the next three years to further strengthen the company's btc portfolio and transform Microstrategy into a leading crypto bank.
btc Yield Rises to 20.4% Amid Market Optimism
Recent <a target="_blank" href="https://cryptoquant.com/insights/quicktake/673b3ecfab157466619ea38e-MicroStrategy-Announces-Its-Largest-Purchase-Yet-46-Billion-for-51780-btc?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=maartunn” target=”_blank”>data from South Korea-based cryptanalysis firm CryptoQuant highlights the impact of MicroStrategy's latest purchase on its bitcoin statistics:
- btc Holdings: Increased from 279,420 btc to 331,200 btc
- MSTR Realized Price: Increased from $42,692 to $49,874
- MSTR Market Value to Realized Value (MVRV): Adjusted from 2.12 to 1.80
- Percentage of btc owned by MicroStrategy: increased from 1,412% to 1,674%
This latest transaction follows closely on the heels of another major acquisition on November 11, during which Saylor noted that the company's treasury operations had returned 7.3% in bitcoin, translating into a net profit of approximately 18,410 btc. for shareholders.
However, with Monday's announcement and the notable upward trend in the price of bitcoin over the past two weeks, Saylor <a target="_blank" href="https://x.com/saylor/status/1858511490510123437″ target=”_blank”>revealed that these metrics have increased to a btc yield of 20.4% and a net profit to shareholders of 51,470 btc.
The correlation between MicroStrategy (MSTR) stock and the price of bitcoin has also been particularly notable in recent weeks. Following bitcoin's all-time high of $93,300 on Nov. 13, MicroStrategy stock also hit an all-time high of $383.
However, as the market-leading digital asset retreated to around $90,650 (up 9% over the past week), MSTR's share price also declined to around $359 over the past weekend, which underlines the strong relationship between cryptocurrency and the performance of the company's shares.
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