Following the significant political shift with President-elect Donald Trump’s victory, business intelligence firm MicroStrategy has intensified its focus on Bitcoin (BTC) investments. This momentous event on November 5 has acted as a catalyst, spurring greater enthusiasm and investment in the broader cryptocurrency market.
MicroStrategy’s Bitcoin Holdings Surpass $29 Billion
Under the leadership of Bitcoin enthusiast Michael Saylor, MicroStrategy announced on Monday its acquisition of approximately 51,780 Bitcoin, valued at around $4.6 billion. This marks the company’s most substantial Bitcoin purchase since it initiated its digital asset acquisition strategy over four years ago.
According to a filing with the US Securities and Exchange Commission, these tokens were acquired between November 11 and November 17. Consequently, MicroStrategy’s cumulative Bitcoin holdings now amount to over $29 billion, translating to 331,200 BTC.
Michael Saylor’s journey with Bitcoin started in 2020 as a hedge against inflation. Initially financed through the company’s cash reserves, MicroStrategy has since shifted to utilizing funds from stock issuances and convertible debt sales to bolster its purchasing power in the cryptocurrency arena.
Michael Saylor remains committed to this strategic path, with plans to raise $42 billion over the next three years. This endeavor aims to further solidify MicroStrategy’s BTC portfolio and transform the company into a leading crypto banking institution.
MicroStrategy’s Impact on Bitcoin Market Dynamics
The recent data from South Korean crypto analytics firm CryptoQuant sheds light on the repercussions of MicroStrategy’s latest acquisition:
- BTC Holdings: Increased from 279,420 BTC to 331,200 BTC
- MSTR Realized Price: Rose 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 acquisition closely follows another substantial purchase on November 11, during which Michael Saylor highlighted the company’s treasury operations yielding a 7.3% gain in Bitcoin. This translated to a net benefit of approximately 18,410 BTC for the shareholders.
Bitcoin Yield and Market Optimism
Monday’s announcement, coupled with the recent upward trend in Bitcoin’s price, has seen these metrics rise significantly. Michael Saylor revealed a BTC yield of 20.4% and a net benefit to shareholders of 51,470 BTC.
The Correlation Between MicroStrategy’s Stock and Bitcoin
In recent weeks, the relationship between MicroStrategy’s stock (MSTR) and Bitcoin’s price has been particularly notable. Following Bitcoin’s peak at $93,300 on November 13, MicroStrategy’s stock also hit an all-time high of $383. However, as Bitcoin’s value adjusted to approximately $90,650—a 9% increase over the previous week—MicroStrategy’s share price also declined to around $359 over the past weekend. This underscores the strong correlation between the cryptocurrency’s performance and the company’s stock value.
