MicroStrategy makes record-breaking $4.6 billion Bitcoin purchase, its largest investment yet

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Written on Nov 18, 2024

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MicroStrategy acquires 51,780 Bitcoin for $4.6 billion, with total reserves now valued at more than $29 bn.
Saylor's '21/21 Plan' includes $21 billion in equity and debt offerings.
Wall Street analysts are optimistic about the potential growth of MicroStrategy’s stock.

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MicroStrategy Inc., known for its enterprise software solutions and bold foray into cryptocurrency investment, has made its largest Bitcoin purchase to date.

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Between November 11 and 17, the firm acquired 51,780 BTC for approximately $4.6 billion, according to a filing with the US Securities and Exchange Commission on Monday.

With this significant acquisition, MicroStrategy now holds a total of 331,200 BTC, valued at more than $29 billion.

The company’s average cost per Bitcoin stands at $49,875, totaling $16.5 billion spent since it began buying the digital asset in 2020.

This latest move is part of an aggressive investment strategy led by co-founder and Chairman Michael Saylor, who views Bitcoin as a safeguard against inflation and a key asset for long-term growth.

MicroStrategy has ambitious plans to further expand its Bitcoin portfolio.

The company aims to raise $42 billion over the next three years under Saylor’s “21/21 Plan,” which outlines $21 billion in equity raises and $21 billion in debt offerings.

This strategic approach is designed to capitalize on Bitcoin’s projected growth, with analysts anticipating a price surge to $100,000 within the next three months.

Analysts’ view on MicroStrategy’s stock

Currently, MicroStrategy holds approximately 1.2% of the total Bitcoin supply, ranking it as the fifth-largest holder after Bitcoin’s creator Satoshi Nakamoto, Binance, BlackRock, and Grayscale.

The company’s bold acquisitions have cemented its reputation as a leading crypto hedge proxy and a prominent force in the digital asset space.

Wall Street analysts are optimistic about the potential growth of MicroStrategy’s stock, buoyed by Bitcoin’s expected climb.

Recent 12-month price targets for the company’s shares average $302.75, with high estimates reaching $385.00.

If Bitcoin’s price continues to rise, MicroStrategy’s stock could see significant gains, aligning with Saylor’s long-term vision of leveraging Bitcoin as a primary corporate asset.