MicroStrategy’s Bitcoin plan gobbles another $5.4b

MicroStrategy, Bitcoin’s largest institutional owner, increased its total Bitcoin holdings to 386,700, according to executive chairman Michael Saylor.

On November 25, Saylor announced that MicroStrategy had added 55,000 Bitcoin (BTC) to its crypto treasury. The software company spent $5.4 billion in the latest acquisition, purchasing the tokens at an average price of $97,862 per BTC.

Since 2020, it has cost MicroStrategy $21.9 billion to accumulate its Bitcoin treasure. BTC’s value appreciated over these four periods, earning Saylor’s firm more than $15.2 billion in unrealized profits. MicroStrategy’s founder said he doesn’t plan to sell any Bitcoin.

Saylor announced a three-year roadmap to inject $42 billion into BTC and bolster the startup’s balance sheet with more Bitcoin.

MicroStrategy purchased 55,500 BTC at ~$97,862 for ~$5.4B #bitcoin and achieved a BTC Return of 35.2% QTD and 59.3% YTD. As of 24.11.2024, we have 386,700 units in stock $BTC It was purchased for ~$21.9 billion at ~$56,761 per Bitcoin. $MSTR https://t.co/79ExzXk4UM

— Michael Saylor⚡️ (@saylor) 25 November 2024

Assets are jumping on MicroStrategy’s BTC wagon

Saylor’s success in BTC scanning has encouraged other companies to take action. Firms like Metaplanet, Semler Scientific, and Genius Group have announced respective BTC treasuries that aim to capitalize on the asset’s meteoric rise.

Eric Semler, founder of Semler Scientific, announced that he purchased $29.1 million worth of BTC, an hour after Saylor published MicroStrategy’s addition. Both firms have generated over 50% returns to date from holding the world’s largest cryptocurrency.

What’s next for Bitcoin?

Bitcoin recently calmed down, approaching the $100,000 mark for the first time in its history. BTC reached $99,645 on November 24, following a series of record highs sparked by the re-election of Donald Trump.

Price discovery looks set to push BTC into six figures, but YouHodler’s market chief Ruslan Lienka suggested a period of consolidation could be in store. In an email to Crypto.news, Lienka noted that altcoins could rebound as Bitcoin regains strength towards new all-time highs.

Last week, market activity was primarily focused on second-tier major cryptocurrencies such as XRP and SOL, while BTC temporarily paused; this could signal the start of a subseason. Meanwhile, BTC is going through a correction phase, likely driven by profit-taking, which could result in price consolidation before a potential move towards the key psychological level of $100,000.

Ruslan Lienka, YouHodler market head