MicroStrategy makes $8b bitcoin bet in November as price surges
Make us a preferred source
Make us a preferred source on Google
The news: MicroStrategy purchased approximately 51,780 Bitcoin for around USD4.6 billion ($7.98 billion), according to an SEC filing, making it the company’s largest acquisition of the digital asset since it began buying Bitcoin over four years ago.
The numbers: The disclosed purchases, between 11 and 17 November, raises MicroStrategy’s total Bitcoin holdings to 331,200 tokens, acquired at an average price of about USD49,874 per coin.
The context: Led by co-founder and Chairman Michael Saylor, MicroStrategy began buying Bitcoin in 2020 as a hedge against inflation, but it is now the largest institutional holder of Bitcoin.
Initially, MicroStrategy used cash for purchases but has since shifted to funding through stock issuance and convertible debt sales. Saylor has doubled down in the strategy this year, with plans to raise USD42 billion over the next three years.
The disclosure helped Bitcoin rebound after its largest two-day decline since the US election over the weekend, climbing to USD92,215 on Monday before easing to USD91,539 each, according to Bloomberg.
The sources: MicroStrategy filing , Bloomberg
