More and more Bitcoin: MicroStrategy bets on cryptocurrency

The software company MicroStrategy acquired Bitcoins worth $1.11 billion between August 6 and September 12, thereby increasing its total holdings of the world's largest cryptocurrency to approximately $9.45 billion. The approval of Bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission (SEC) in January, along with the support from Wall Street heavyweights and personalities like Elon Musk, has brought this once-nascent asset class closer to the mainstream. Analysts emphasize that MicroStrategy’s Bitcoin purchases have contributed to the preservation of their reserve assets and have bolstered confidence in the company’s stock, which moves in tandem with the digital currency. MicroStrategy began purchasing and holding Bitcoin in 2020, when revenue from its software business was declining, and has since become the largest corporate holder of the cryptocurrency. The company ended 2023 with 190,000 Bitcoins on its balance sheet and had previously announced plans to further expand its Bitcoin investment. Additionally, in July, MicroStrategy's board approved a 10-to-1 stock split to make its shares more accessible to investors. During the specified period, MicroStrategy acquired approximately 18,300 Bitcoins at an average price of around $60,408 per Bitcoin. As of September 12, 2024, the company and its subsidiaries held approximately 244,800 Bitcoins, equivalent to about $9.45 billion. The average purchase price, including fees and costs, stands at approximately $38,585 per Bitcoin. MicroStrategy’s shares have more than doubled in 2024, while Bitcoin has gained nearly 31% so far.