Microstrategy doubled down (again) on bitcoin purchase

MicroStrategy, the company synonymous with aggressive Bitcoin accumulation, continues to stick with its bold strategy. Under the leadership of Michael Saylor, the firm announced yet another sizable Bitcoin acquisition—18,300 BTC to be exact—purchased for approximately $1.11 billion, averaging $60,408 per Bitcoin.

This is just another chapter in MicroStrategy’s ongoing relationship with Bitcoin, a saga that began when the company first began converting its treasury reserves into BTC back in 2020. Fast forward to today, and the company’s total Bitcoin holdings now stand at an impressive 244,800 BTC, all acquired at an average cost of $38,585 per Bitcoin. This figure alone underscores the scale of MicroStrategy’s commitment.

But beyond the sheer quantity of Bitcoin held, what’s even more noteworthy is the performance metrics released alongside this announcement. MicroStrategy reports a BTC yield of 4.4% for the quarter-to-date (QTD) and 17.0% year-to-date (YTD). These yield figures indicate that their BTC investments have been fruitful—no small feat in the often volatile world of cryptocurrency.

The introduction of a new “BTC Yield KPI” (Key Performance Indicator) in MicroStrategy’s financial reporting adds an additional layer of insight into their Bitcoin strategy. The KPI is designed to measure the efficiency of the company’s BTC holdings in contributing to overall returns, signaling a more analytical approach to how MicroStrategy views Bitcoin beyond a simple reserve asset.

Michael Saylor’s tweet announcing the purchase was characteristically bullish:
“MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin.”

Saylor has long championed Bitcoin as the ultimate store of value, often likening it to digital gold and describing it as a superior alternative to traditional treasury management options. His confidence appears unwavering despite the significant fluctuations in Bitcoin’s market value since the company’s first foray into cryptocurrency.

The latest purchase and the introduction of BTC Yield KPI are proof that MicroStrategy is not just accumulating Bitcoin passively. The company is actively managing its Bitcoin holdings as a key strategic asset, using it to drive both financial performance and innovation within the business.

As other institutional players continue to show growing interest in Bitcoin, all eyes remain on MicroStrategy as the company continues to blaze a trail, not just as a business intelligence firm but as a significant player in the world of cryptocurrency. Saylor’s vision of a Bitcoin-standard balance sheet is becoming clearer with every major acquisition—and as the yields show, it’s a vision that is proving profitable.