MicroStrategy ups Bitcoin total to $38b

Michael Saylor announced a significant acquisition of Bitcoin by MicroStrategy shortly after pitching the cryptocurrency to Microsoft.

On December 2, Saylor announced that MicroStrategy had purchased 15,400 Bitcoin (BTC) for $1.5 billion, averaging $95,976 per token. This acquisition increased MicroStrategy’s Bitcoin holdings to approximately 402,100 BTC; As of the time this news was published, its value was over $38 billion and Bitcoin was trading around $95,194.

24-hour BTC price chart – December 2 | Source: crypto.news

MicroStrategy spent $23.4 billion on Bitcoin purchases at an average cost of $58,263 per coin. The firm’s assets have accumulated over $15 billion in unrealized gains since it began accumulating Bitcoin in 2020.

MicroStrategy’s Bitcoin playbook

MicroStrategy raised funds for Bitcoin purchases through share sales and securities issuance and introduced the “BTC Return” metric to measure the growth of Bitcoin holdings relative to share dilution. According to Saylor, MicroStrategy’s BTC Return stands at 38.7% quarter-to-date and 63.3% year-to-date.

The company’s strategy has inspired others, including Tokyo-based Metaplanet and Bitcoin miner Marathon Digital. Both companies have adopted similar approaches to financing Bitcoin purchases. Metaplanet even announced plans to reward shareholders who hold its shares with Bitcoin.

Shortly before Saylor’s announcement, Marathon announced a proposed $700 million new special convertible note offering with a $105 million extension option. Marathon said the proceeds will mainly be used to purchase more Bitcoin and initiate banknote buybacks, as in previous BTC-focused capital raises.

Saylor, a vocal advocate of Bitcoin, has continued to support Bitcoin adoption. Over the weekend, he pitched Bitcoin to Microsoft’s Board of Directors, cementing his position as a leading proponent of institutional cryptocurrency investment.