MicroStrategy now owns 1% of all bitcoin

Published: 2024-03-20 09:10 +02:00 by Agency Staff tag: Cryptocurrencies

MicroStrategy has raised its bitcoin holdings to more than 1% of all the cryptocurrency that will ever be issued.

MicroStrategy CEO Michael Saylor

MicroStrategy made its second multimillion-dollar purchase of bitcoin in a little more than a week, raising the company’s holdings to more than 1% of all the cryptocurrency that will ever be issued.

The enterprise software maker, whose corporate strategy includes buying the digital currency, purchased 9 245 bitcoin for US$623-million between 11 and 18 March, according to a US Securities and Exchange Commission filing on Tuesday. The purchase, along with a $821.7-million bitcoin acquisition announced last week, were both financed mostly through the sale of convertible notes.

Michael Saylor, the chairman and co-founder of MicroStrategy , started buying bitcoin in 2020 as an inflation hedge and alternative to holding cash. The company holds 214 246 tokens valued at around $14-billion. The maximum total amount of bitcoin is 21 million, with about 19.7 million tokens having been issued so far. It is estimated that the milestone will be reached in 2140.

The maximum total amount of bitcoin is 21 million, with about 19.7 million tokens having been issued so far

In terms of money spent, nearly a quarter of MicroStrategy’s bitcoin purchases have happened in 2024 and at an average cost that is more than twice last year’s average cost.

The average price for the latest acquisition of bitcoin was $67 382, while the average price for MicroStrategy’s total holding is $35 160, according to the filing. Bitcoin fell about 5.7% to $63 500 on Tuesday.

The Tysons Corner, Virginia-based firm completed the sale of $603.8-million of convertible senior notes through a private sale on 18 March.

MicroStrategy isn’t the only company taking advantage of surging share prices and demand for bitcoin to raise debt. Coinbase Global, the largest US crypto exchange, said on Monday that it raised the sale of its own convertible note issue to $1.26-billion. — Muyao Shen, with Tom Contiliano, (c) 2024 Bloomberg LP

Get breaking news alerts from TechCentral on WhatsApp

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.