MicroStrategy has completed the largest bitcoin purchase deal at $2,03 billion

What’s new? Analytics software company MicroStrategy, the largest holder of bitcoin among publicly traded companies, has once again increased its investment in the first cryptocurrency. Between October 31 and November 10, MicroStrategy bought 27 200 BTC worth $2,03 billion, the largest single purchase by BTC volume since it first invested in the asset, buying 29 646 coins in December 2020.

Source: X.com

What else is known? MicroStrategy co-founder and chairman Michael Saylor decided to invest in bitcoin to hedge inflation. Initially, the firm used cash for purchases and then switched to using proceeds from the sale of stocks and convertible debt. In 2024 alone, it conducted several bond sales worth hundreds of millions of dollars, then used those funds to buy bitcoins.

This strategy, thanks to the rising value of bitcoin, has helped MSTR stock outperform the securities of all major US tech companies, including Nvidia, in terms of returns since mid-2020. MSTR has also outperformed the S&P 500 index, which tracks the largest-capitalization stocks in the United States, by a factor of 14 times.

MSTR stock is up more than 2500% since August 2020, and BTC has added 660% in the same time frame.

After the US election, prices in the crypto market went up sharply as Donald Trump, who supports bitcoin, mining, and blockchain technology in general, won.

On November 11, bitcoin updated its all-time high several times and came close to the $89 000 mark. Against this background, shares of crypto companies also went up. In particular, MSTR has grown by 49% since November 5 and reached an all-time high of $340. The growth since the beginning of the year amounted to 391%.

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Notably, analysts polled by Bloomberg last month called MSTR’s high growth rate unwarranted, given the company’s declining revenue and cash flow constraints.

At the same time, companies that followed MicroStrategy’s example and started buying bitcoin to hold on their own balance sheets also recorded a sharp rise in share price. The most notable example is Japan’s Metaplanet, whose shares have risen hundreds of percent since April when it began buying bitcoin.

This also includes medical technology company Semler Scientific, which first invested in bitcoin in May — SMLR shares have added 120% in six months.

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As for MicroStrategy itself, after another purchase, the total number of coins on its balance sheet rose to 279 420 with a purchase price of $11,9 billion or an average of $42 692 per coin. Taking into account the current exchange rate, their value is about $24,53 billion, and the company’s unrealized profit is $12,63 billion.

Earlier, experts admitted that MicroStrategy could be included in the S&P 500 index if it changes the way it accounts for bitcoins on its balance sheet and starts valuing them at market value. So far, the company does not meet the criteria for the index, as it has regularly recorded losses in the last year, except for Q4 2023.

Interestingly, MicroStrategy paid an $11 million fine in 2000 to settle claims by the US Securities and Exchange Commission (SEC). The company was accused of overstating its financial results for 21 months.