MicroStrategy, the largest corporate Bitcoin holder, recently increased its holdings by acquiring roughly 27,200 BTC for approximately $2.03 billion in cash, at an average price of $74,463 per coin, inclusive of fees. This purchase, funded by proceeds from recent share sales, was made over a ten-day span from October 31 to November 10, 2024, as noted in a company statement.
With this purchase, MicroStrategy and its subsidiaries now hold a total of 279,420 BTC, valued at roughly $11.9 billion, translating to an average purchase price of $42,692 per coin. This substantial acquisition follows the company’s latest earnings report, which showed quarterly revenue of $116 million, missing analysts’ estimates of $122.66 million by 5%. Despite this, MicroStrategy remains bullish on Bitcoin, reporting a year-to-date return of 17.8% on BTC as of October 30, 2024, and outlining a plan to raise an additional $42 billion over the coming years for further Bitcoin purchases.
Analysts, including those at JPMorgan, expect this purchase to support Bitcoin’s price, especially in the wake of Donald Trump’s U.S. presidential election win, as pro-crypto policies and market optimism gain traction.