On September 20, MicroStrategy CEO Michael Saylor revealed that the company has acquired an additional 7,420 bitcoins for around $489 million. With this purchase, MicroStrategy’s total Bitcoin holdings exceed 252,000, with an investment of $9.9 billion.
BREAKING: MicroStrategy purchases another 7,420 #Bitcoin for $458.2 million. pic.twitter.com/4nBm3EUH6M
— Bitcoin Magazine (@BitcoinMagazine) September 20, 2024
Since 2020, MicroStrategy has embraced a corporate strategy centered around Bitcoin, recognizing its potential as a hedge against inflation and a store of value. The company has gathered over 252,000 bitcoins valued at more than $15 billion, significantly enhancing shareholder wealth.
To finance its Bitcoin acquisitions, MicroStrategy has utilized borrowed funds by issuing convertible senior notes. Recently, it raised over $1 billion through these note offerings, primarily aimed at securing more Bitcoin. Other public companies have begun to adopt this “buy Bitcoin” corporate strategy in pursuit of capitalizing on Bitcoin’s expansion.
The company’s Bitcoin purchases can be seen as a large-scale “speculative attack” on traditional fiat currencies. By swapping fiat currency for limited bitcoin when it is perceived as undervalued, MicroStrategy stands to gain significant returns should Bitcoin continue to appreciate as a leading global digital asset.
By integrating the most durable asset into its treasury, the company is undertaking history’s most extensive speculative challenge to fiat currency. Other public firms are starting to follow MicroStrategy’s lead by implementing Bitcoin treasury strategies and increasing their Bitcoin holdings on their balance sheets.
