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The purchase was funded by selling 13.6 million MicroStrategy (MSTR) shares, continuing Michael Saylor’s strategy of acquiring Bitcoin at any price.
Key Notes
MicroStrategy has unveiled its "42" strategy, aiming to raise $42 billion through debt and secondary stock offerings.The company's current Bitcoin investments have resulted in significant yields, with a 20.4% return for QTD and 41.8% YTD.JPMorgan has raised its stake in MicroStrategy by 12.5%, acquiring 660,693 shares valued at $111.39 million in Q3.MicroStrategy Inc (NASDAQ: MSTR) executive chairman Michael Saylor announced purchasing 51,780 BTC BTC $90 425 24h volatility: 0.3% Market cap: $1.78 T Vol. 24h: $64.70 B worth a staggering $4.6 billion over the last week at an average price of $88,627. With this, the company has extended its total Bitcoin holdings to 331,200 BTC with a net investment value of $16.5 billion since September 2020.
MicroStrategy funded this purchase by selling nearly 13.6 million MSTR shares worth $4.6 billion. Michael Saylor is known for buying Bitcoin and any price, and thus he quickly deployed his cash to build the company’s Bitcoin reserves. “I’ll be buying the top forever,” said Saylor.
As per MicroStrategy’s at-the-market share issuance program, the company has an additional $15.3 billion of stock to sell, and per its announcement on Monday, November 18. Over the last week itself, there has been massive Bitcoin buying by big corporations and through spot Bitcoin ETFs. Along with MicroStrategy, Semler Scientific, Metaplanet, and Marathon Digital have also added BTC to their reserves.
✅ $MSTR bought 51,780 Bitcoin last week
✅ U.S. Bitcoin ETFs bought 20,560 Bitcoin last week
✅ $SMLR announced 215 Bitcoin buy
✅ $MARA is raising $700 million to buy Bitcoin
🟧 Only 450 Bitcoin mined/day
Who is still selling?
— HODL15Capital 🇺🇸 (@HODL15Capital) November 18, 2024
The latest Bitcoin purchase has contributed to a strong yield for the company, with a 20.4% return quarter-to-date (QTD) and 41.8% year-to-date (YTD). MicroStrategy has been stacking sats at an average price of $49,000 per Bitcoin, further solidifying its position as one of the largest institutional Bitcoin holders. Saylor noted:
“Our $MSTR treasury operations in the first 17 days of November resulted in a BTC Yield of 20.4%, a net benefit to our shareholders of ~51,470 BTC”.
Michael Saylor believes that MicroStrategy is just getting started with its BTC acquisition strategy. The firm has announced its ambitious new “42” strategy, aiming to raise $42 billion to further expand its Bitcoin holdings. The company plans to secure $21 billion in debt and raise an additional $21 billion through secondary stock offerings, with all proceeds dedicated to purchasing more Bitcoin.
MicroStrategy (MSTR) Share Price Action
MicroStrategy (MSTR) stock has been on a rampage this year with nearly 400% gains since the beginning of 2024 this year. Currently, it is trading at $340 levels with the company valuation soaring to $67 billion. this is more than three times its Bitcoin holding value of $21 billion as of BTC’s market value.
However, amid this development, the MSTR share price is not showing much movement, with less than 1% gains at press time. As per the 13F filing for Q3 2024, Wall Street banking giant JPMorgan aggressively purchased MSTR stocks during the last quarter ending September.
JPMorgan has increased its exposure to MicroStrategy, raising its stake by 12.5% to a total of 660,693 shares, valued at $111.39 million at the end of Q3. This move reflects the bank’s ongoing strategy to enhance its cryptocurrency portfolio. From October 1, the MSTR share price has more than doubled. Thus, JPMorgan is already sitting at more than 100% gains on its investment.
If the bulls rage in further, the MSTR stock can hit $400 by November end. However, investors need to do their due diligence before building fresh positions after the massive run-up in a very short period of time.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
