MicroStrategy has boosted its Bitcoin holdings with a $1.5 billion investment, increasing its total token count to 402,100. The company’s Executive Chairman Michael Saylor pitched the benefits of investing in Bitcoin to the Microsoft board, emphasizing its potential to strengthen options market and equity liquidity.
MicroStrategy Acquires Additional Bitcoin Holdings
Total Holdings Reach 402,100 Tokens Worth $38.2 Billion
MicroStrategy has added 15,400 bitcoin to its existing holdings, increasing its total token count to 402,100. This acquisition was funded through share sales under the company’s at-the-market program.
Average Purchase Price of $58,263
The overall average purchase price for MicroStrategy’s bitcoin holdings is now $58,263. The recent buy brings the company’s total investment in bitcoin to $38.2 billion, with each token valued at $95,000.
Saylor Pitches Bitcoin Investment to Microsoft Board
Executive Chairman Michael Saylor presented a 3-minute pitch to the Microsoft board on the benefits of investing in bitcoin as a diversification strategy. He emphasized that the current treasury strategy is weakening and that daily traded volume is being outpaced by MicroStrategy.
Comparison with Microsoft’s Trading Volume
As of November 27, Microsoft generated an average daily trading volume of $9.7 billion, while MicroStrategy reached $22 billion. Despite their similar options open interest, MicroStrategy is only 2.5% the size of Microsoft.
Saylor’s Proposal to Microsoft Board
Saylor suggested that investing in bitcoin can help Microsoft outperform and strengthen its options market and equity liquidity. He also mentioned that the company has surrendered up to $200 billion in capital over the past five years through dividends or stock buybacks, which could be better utilized by acquiring bitcoin as a treasury asset.
Bitcoin’s 1200% Growth
Bitcoin has seen significant growth over the past five years, increasing by over 1200%. Saylor highlighted this massive opportunity cost missed by Microsoft and emphasized the potential benefits of investing in bitcoin.
MARA Holdings’ Bitcoin Purchases
MARA Holdings, which has been trying to replicate MicroStrategy’s strategy, announced the purchase of another 6,484 BTC between October 1 and November 30 for approximately $618.3 million in cash at an average cost of $95,352.
Proposed Private Offering by MARA Holdings
The company launched a proposed private offering of $700 million in zero-coupon convertible senior notes due 2031. The proceeds will primarily be used to acquire further bitcoin and repurchase existing convertible notes due 2026.
Overview of Recent Developments
Holdings and Value
Funding and Purchase Price
Comparison with Microsoft
Other Developments
Outlook and Impact
The recent developments in MicroStrategy’s bitcoin holdings have sparked interest among investors and analysts, with some viewing it as a potential indicator of the company’s commitment to diversifying its treasury assets. The impact on the overall market and the implications for other companies considering similar strategies remain to be seen.
