$2B Bitcoin Bet by MicroStrategy: 27,200 More BTC Added

MicroStrategy has followed through on its Bitcoin (BTC)  bullishness by buying 27,200 BTC, or roughly $2.03 billion. The transaction was bought between $74,463 per Bitcoin, including fees, at an average price between October 31 and November 10, 2024.

With the purchase of this latest Bitcoin, MicroStrategy’s total BTC holdings increased to 279,420 BTC. It positioned the firm as the largest corporate Bitcoin holder.

Once you step into BTC, it is too far to come back. CEO Michael Saylor has never looked back, and the firm has now invested a total of $11.9 billion into BTC.

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The latest addition brings MicroStrategy’s average price for each bitcoin to $42,692, well below the Bitcoin’s current value of almost $87,000. After the U.S. elections, Bitcoin has recently rallied to an all-time high of nearly $87,000 on growing market demand and bullish sentiment.

MicroStrategy Bolsters BTC Holdings Amid Price Surge

MicroStrategy’s most recent Bitcoin acquisition sought to solidify its position in the digital asset market.

Open interest (the total amount of contracts continuously outstanding) for Bitcoin surged recently on the Deribit exchange. BTC price topped $90K, reaching a value of $2.8 billion. But this surge shows investors are turning in droves to Bitcoin as a reserve asset. It is propelled by geopolitical shifts and inflationary pressures pushing the digital coin closer.

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This news follows a period of mixed results for MicroStrategy. The company reported sales of $116 million in the quarter, less than the $122.66 million analyst estimate. Despite this revenue gap, MicroStrategy’s continued Bitcoin purchases attest to the asset as a strategic reserve for the long term and feature Bitcoin’s growing popularity.

Corporations Embrace Bitcoin as Economic Hedge

The latest acquisition by MicroStrategy spearheads a campaign to gradually increase the company’s Bitcoin holdings in the coming years.

Last week, the company rolled out its ’21/21 plan’. It is a big plan to bring in $42 billion in equity and fixed-income securities. With this funding, MicroStrategy will be able to continue its Bitcoin acquisition strategy and remain a leader in corporate cryptocurrency investments.

This “21/21 plan” is in harmony with a wider trend of corporations experimenting with Bitcoin as a treasury reserve.

With its macroeconomics setting the industry ablaze, businesses have started to evaluate Bitcoin as a hedge against economic instability. This trend is echoed in MicroStrategy’s approach, as corporate treasurers now embrace using Bitcoin as an asset on the balance sheet.

Metaplanet Turns to BTC Amid Economic Challenges

MicroStrategy’s move to become aggressive about Bitcoin follows other companies worldwide in their acceptance of digital assets.

According to the statement, Japan’s economic problems, including high government debt and a weak yen, have also spurred Japanese investment firm Metaplanet to ramp up its Bitcoin holdings. On Monday, Metaplanet said it plans to raise funds, with stock acquisition rights, to purchase Bitcoins, raising 299.7 million yen (equivalent to approximately $2 million).

Further, Metaplanet has partnered with SBI VC Trade, a crypto subsidiary of the SBI Group, to increase tax efficiency and financing with bitcoin as collateral.

Metaplanet’s involvement in this collaboration provides the opportunity to use Bitcoin in traditional financial strategies and establishes its growing role in corporate custody services.