MicroStrategy has solidified its position as a significant Bitcoin holder by acquiring 51,780 BTC in a week. This acquisition, valued at $4.6 billion, represents one of the largest Bitcoin purchases ever recorded. The company paid an average of $88,627 per Bitcoin during the transaction. With this addition, MicroStrategy now holds a total of 331,200 BTC, up from its previous 279,420 BTC.
This purchase has significantly increased the company’s share of the circulating Bitcoin supply to 1.674%. Before the acquisition, MicroStrategy owned 1.412% of the supply, with its total Bitcoin portfolio held at an average cost of $49,874 per coin.
Also Read: Michael Saylor Cheers Bitcoin’s Rise as MicroStrategy Buys $2.03 Billion More BTC
Impact on Market Metrics and Bitcoin Value
The acquisition shifted the Market Value to Realized Value (MVRV) ratio of MicroStrategy’s Bitcoin holdings from 2.12 to 1.80. Despite the substantial size of the transaction, Bitcoin’s price remained resilient and stood the test. The cryptocurrency reached a record $92,400 on November 12 before settling at $89,782.54, marking a 9.74% weekly gain.
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Based on market capitalization, a measure of the cryptocurrency’s recognition, Bitcoin has reached $1.77 trillion. This was established by the selected digital asset having a 24-hour trading volume of $59.6 billion.
Funding Strategy Through Share Sales
MicroStrategy made this purchase through a rather intense sale of 13.6 million MicroStrategy shares from November 11 to November 13. This move raised $4.6 billion to facilitate the acquisition while the company still has $15.3 billion in shares available for sale, as disclosed in SEC filings.
MicroStrategy bought 27,200 bitcoins in the first quarter of the year at an average rate of $74,463 per coin. These initial acquisitions have now resulted in almost $200 Million in profits, demonstrating the effectiveness of its capital allocation strategy.
Conclusion
MicroStrategy’s strategic approach to Bitcoin acquisitions has further entrenched its dominance in the market. The company’s ability to execute high-value transactions underscores its confidence in the long-term value of Bitcoin. With its growing portfolio, MicroStrategy continues to influence the dynamics of cryptocurrency investment.
Also Read: MicroStrategy Boosts Bitcoin Holdings with $2.03 Billion Purchase as BTC Hits New High
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.