Michael Saylor’s MicroStrategy Makes Monster Bitcoin Purchase, Acquires Another 55,500 BTC For $5.4 Billion

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MicroStrategy Has Been On A Relentless Bitcoin Buying Spree, But Are They Really On The Right Track?

MicroStrategy’s thirst for Bitcoin cannot be quenched. The business intelligence company founded by Michael Saylor has stunned the crypto community today with an enormous Bitcoin purchase. MicroStrategy has snapped up 55,500 of the flagship crypto for $5.4 billion, bringing its total stash to 386,700 BTC.

The announcement comes after the firm successfully completed its senior note offering last Friday.

MicroStrategy Makes Largest-Ever Bitcoin Buy

MicroStrategy has announced its biggest purchase to date.

According to an 8-K filing with the Securities and Exchange Commission on Monday, the company bought an additional 55,500 BTC for $5.4 billion between Nov. 18 and Nov. 24 at an average price of $97,862 per coin.

https://twitter.com/saylor/status/1861033309934862601

The purchase represents MicroStrategy’s biggest-ever BTC acquisition since BTC started accumulating Bitcoin in late 2020 under the leadership of co-founder Michael Saylor.

The purchase follows the successful completion of a $3 billion note offering on Nov. 21, with net proceeds of $2.97 billion, and the sale of an additional 5,597,849 MicroStrategy shares between Nov. 18 and Nov. 24 for roughly $2.46 billion.

As of Nov. 24, the firm said it still had $12.8 billion worth of shares available for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities, targeting a total of $42 billion capital raise over the next three years for additional BTC purchases. 

The acquisition of this latest BTC cache has lifted MicroStrategy’s total BTC holdings to a massive 386,700 BTC, acquired for a total of $21.9 billion — or an average price of $56,761 per token.

The Tysons Corner, Virginia-based firm’s continued buying spree as BTC eyes the $100,000 level, indicates its anticipation of further growth in Bitcoin’s price, spurred by growing institutional adoption and optimism over potential crypto-friendly legislation under the incoming Donald Trump regime.

Earlier today, Bernstein analysts projected that MicroStrategy will acquire as much as 4% of Bitcoin’s total supply over the next decade. If this happens, MicroStrategy would own an eye-watering 830,000 BTC — or $830 billion worth of crypto at a value of $1 million per Bitcoin by the end of 2023, they noted.

Semler Scientific Follow’s MicroStrategy’s Lead

Meanwhile, U.S.-based medical device manufacturer Semler Scientific has continued to take a page out of MicroStrategy’s playbook.

Semler Scientific announced today that it had bought 297 BTC for roughly $29.1 million between Nov. 18 and Nov. 22. The company now holds 1,570 BTC, worth $118 million.

Notably, Semler Scientific uses MicroStrategy’s Bitcoin yield as a key performance indicator to assess the success of its BTC acquisition strategy. The company said it had achieved a Bitcoin yield of 58.4% since adopting its Bitcoin treasury strategy earlier this year, highlighting substantial growth for stakeholders.

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