MicroStrategy, a company known for owning more Bitcoin ($BTC) than any other public firm, has made headlines with a record-breaking Bitcoin purchase.
As per a recent regulatory report, the company bought a massive 51,780 $BTC, the largest single acquisition in its history.
On 18 November, MicroStrategy acquired 51,780 Bitcoin for about $4.6 billion. The company paid an average price of $88,627 per Bitcoin.
This purchase brings its total Bitcoin holdings to 331,200 $BTC, worth more than $30.8 billion at today’s market prices.
This isn’t just another Bitcoin buy for MicroStrategy, it’s their biggest one yet. The timing of the purchase coincided with Bitcoin trading at $89,831.11 earlier that day.
After the transaction, Bitcoin’s price climbed by about 3.52%, though it’s unclear if the buy itself caused the increase.
MicroStrategy’s move further highlights its strong commitment to Bitcoin as a major part of its financial strategy.
Bitcoin journey
MicroStrategy began its Bitcoin investment journey on 11 August 2020, purchasing 21,454 $BTC. At the time, Bitcoin was priced at $11,682, but the move didn’t significantly impact the market. In fact, Bitcoin’s price slightly dropped to $11,579 by the end of the day.
Since then, MicroStrategy has made several high-profile Bitcoin purchases. On 21 December 2020, it bought 29,646 $BTC when Bitcoin was priced around $23,518.
This time, Bitcoin’s value increased slightly to $23,795, but it still didn’t spark major market movement.
Another big purchase came on 24 February 2021, when MicroStrategy bought 19,452 $BTC for $1 billion.
However, within 24 hours, Bitcoin’s price dropped by 3.5%, showing that even large-scale purchases can face unpredictable market reactions.
The company’s buying streak continued in late 2024. Between 31 October and 10 November, as Bitcoin’s price ranged between $72,000 and $80,000, MicroStrategy purchased over 27,200 $BTC.
During that time, Bitcoin’s price rose by around 11.14%. This recent surge in acquisitions reflects the company’s growing confidence in Bitcoin as a long-term asset.
MicroStrategy’s influence and vision
MicroStrategy’s bold Bitcoin strategy has had a major impact on its own success. The company recently climbed into the top 100 publicly traded companies in the US, now ranking 97th.
Its stock price surged by 12% to $430 per share on 18 November, following Bitcoin’s rise to a new all-time high of over $94,000. MicroStrategy’s stock is up more than 500% this year, compared to Bitcoin’s 100% growth.
Over the past five years, MicroStrategy has even outperformed tech giant NVIDIA. While NVIDIA’s stock rose by 2,688% during this period, MicroStrategy’s growth topped 2,739%, an impressive feat for a company that adopted Bitcoin as a treasury asset only in August 2020.
MicroStrategy Chairman, Michael Saylor, is a vocal advocate for Bitcoin. He believes other major companies should follow MicroStrategy’s lead and invest part of their cash reserves in Bitcoin.
“It ought to be put on the agenda of Berkshire Hathaway, Apple, Google, and Meta”, Saylor recently said. According to him, Bitcoin can stabilise a company’s stock by diversifying its value with tangible assets.
Saylor’s vision has extended to other corporations as well. On 19 November, he revealed plans to present a proposal to Microsoft’s board of directors, urging them to consider Bitcoin investments.
While Microsoft’s leadership has recommended voting against the proposal, the discussion has already drawn attention to the potential of Bitcoin in corporate finance.
MicroStrategy’s aggressive Bitcoin strategy not only strengthens its position as a leader in the cryptocurrency space but also influences broader market trends.
With its record-breaking purchase, the company demonstrates a growing belief in Bitcoin’s role as a key asset for institutional investors.
