While some investors hold back from buying Bitcoin when it reaches new highs, MicroStrategy has doubled down, demonstrating a strong commitment to the cryptocurrency.
In a Nov. 11 announcement, the business intelligence firm turned Bitcoin (BTC) investor said it bought 27,200 Bitcoin for about $2.03 billion in cash. MicroStrategy purchased the coins between Oct. 31 and Nov. 10, at an average price of $74,463 per BTC, including fees and expenses.
With the latest purchase, the company now holds a total of 279,420 BTC, worth nearly $23 billion at current market prices.
Selling shares to buy more Bitcoin
According to MicroStrategy, the BTC purchases were made using proceeds from issuing and selling its shares.ย
MicroStrategy reported entering into sales agreements with various companies on Aug. 1 and on Oct. 30. As of Nov. 10, it had sold approximately 7.8 million shares for about $2 billion
The company also disclosed that its BTC yield โ a key performance metric assessing its Bitcoin acquisition strategy โ was 7.3% from Oct. 1 to Nov. 10. For the year to date, its BTC yield stands at 26.4%.
The news follows the companyโs share price increasing following Donald Trumpโs victory in the United States presidential election on Nov. 5. On Nov. 8, MicroStrategyโs stock price had shot up by 19.9% after Trumpโs victory was confirmed.
Related: Crypto greed index taps 7-month high as Bitcoin surges past $81K
MicroStrategyโs Bitcoin ROI surpasses 100%
Meanwhile, the MicroStrategy Bitcoin portfolio tracker, โSaylor Trackerโ โ named after the companyโs executive chairman, Michael Saylor โย showed the firmโs return on investments on BTC had surpassed 100% on Nov. 10.ย
The data tracker showed that the companyโs holdings at the time had already surpassed $20.5 billion even before adding the companyโs latest BTC purchase.
BitcoinTreasuries data shows that the company had bought BTC 42 times at an average price of $39,292. The firm remains the largest corporate BTC holder, followed by Marathon Digital and Riot platforms. The two companies hold BTC worth about $2.1 billion and $840 million, respectively.
