MicroStrategy Expands Bitcoin Holdings with $5.4 Billion Purchase; Shares Dip

Key Highlights:

MicroStrategy, the largest corporate Bitcoin holder, revealed a $5.4 billion cryptocurrency purchase, sparking initial gains but leading to a stock decline by market close.

The company has significantly increased its Bitcoin acquisitions following Donald Trump's November 5 election win, amid optimism about a more crypto-friendly government.

As of November 24, MicroStrategy holds approximately 386,700 bitcoins.

Details on the Latest Purchase

MicroStrategy (MSTR) shares experienced a volatile trading session on Monday, initially climbing pre-market before turning negative. The movement followed the company’s announcement of an additional $5.4 billion investment in Bitcoin.

In a regulatory filing, MicroStrategy disclosed that it had acquired around 55,500 bitcoins between November 18 and November 24. With this purchase, the company’s total Bitcoin holdings have risen to 386,700 coins, valued at approximately $37 billion at current market rates.

Financing the Purchase

The latest Bitcoin acquisition was funded through the issuance of convertible bonds and additional stock sales over the past week. Notably, this came after MicroStrategy’s $4.6 billion Bitcoin purchase in the previous week, demonstrating its aggressive accumulation strategy.

Riding the Crypto Momentum

The surge in Bitcoin investments coincides with the cryptocurrency approaching the $100,000 milestone for the first time, although it was trading just above $95,000 by Monday morning.

Since initiating its Bitcoin strategy in August 2020, MicroStrategy has gradually shifted its focus from being a business software provider to a major cryptocurrency investor. This year, the company intensified its purchases, particularly following Donald Trump's election victory, as investors anticipate a regulatory environment favorable to digital assets under the new administration.