MicroStrategy invests $460 million to purchase Bitcoin: holdings surpass 330,000, calls on Buffett and Microsoft to join.
MicroStrategy recently made another move, buying over 50,000 bitcoins worth $4.6 billion in just one week, bringing their total holdings to over 330,000 bitcoins, accounting for 1.5% of the global bitcoin supply. Founder Michael Saylor not only emphasized that bitcoin is the future of global assets but also suggested that companies with large cash reserves like Berkshire Hathaway and Microsoft should enter the market and purchase bitcoin to preserve capital, serve as a reserve asset, and generate higher returns.
During the period from November 11 to November 17, MicroStrategy bought 51,780 bitcoins at an average price of about $88,000 per bitcoin, with a total investment of $4.6 billion. Currently, MicroStrategy holds a total of 331,200 bitcoins, with a cumulative purchase cost of approximately $16.5 billion and an average cost per bitcoin of around $49,874. MicroStrategy has become one of the companies with the largest holdings of bitcoin among publicly traded companies, accounting for approximately 1.5% of the global bitcoin supply.
MicroStrategy announced its weekly purchase plan on its own Twitter account.
The common stock financing continues, with a cumulative issuance of up to $21 billion.
MicroStrategy continues to raise funds through the issuance of common stock to support bitcoin purchases. Currently, they have raised $4.6 billion, and there is still an unused issuance capacity of nearly $15.3 billion, primarily to provide flexibility for future purchasing strategies.
The bitcoin acquisition strategy has brought impressive returns, with a yield indicator of 41.8%.
According to MicroStrategy’s disclosed Bitcoin Yield KPI, the bitcoin investment return rate from January 1 to November 17 this year reached 41.8%. This indicates that MicroStrategy’s strategy of purchasing bitcoin through stock financing not only brings impressive returns but also creates long-term value for shareholders.
Michael Saylor specifically mentioned Berkshire Hathaway, owned by Warren Buffett, in a recent interview. He directly pointed out that their $325 billion cash is “losing value” at a rate of 12% per year, equivalent to a loss of nearly $40 billion annually. Saylor further stated that if Berkshire Hathaway were to invest this money in bitcoin, they could earn a minimum return of 21% per year, easily earning over $60 billion in one year. He emphasized that companies entering the market now will be the biggest winners in the future as global capital gradually shifts towards bitcoin.
Saylor not only mentioned Berkshire Hathaway but also called out tech giants like Microsoft. He stated that if Microsoft were to convert some of its cash into bitcoin every quarter, it could create trillions of dollars in value for shareholders in the next 10 years, increasing its market value by hundreds of billions of dollars.
Saylor also called on the US government to establish a “Bitcoin National Reserve,” similar to the gold reserve, and purchase at least 1 million bitcoins, accounting for 5% of the global supply. Saylor believes that this move will not only attract global capital to flow into the US but also ensure that the US takes the lead in the global digital economy era. He further stated, “If the US buys 20% of the bitcoin now, the future returns will be equivalent to buying Manhattan Island back then.”
As the scarcity of bitcoin becomes evident, institutions have already started to position themselves. Currently, the total global bitcoin supply is only 21 million, with approximately 18% already secured by institutions such as MicroStrategy and BlackRock. Saylor believes that as more bitcoins are held for the long term, their scarcity will drive prices continuously upward, leading to an unprecedented asset revolution.
