Michael Sailor, CEO of MicroStrategy It was announced On September 20, the company announced that it had purchased an additional 7,420 bitcoins for approximately $489 million. The company now holds over 252,000 bitcoins, purchased for $9.9 billion.
BREAKING: MicroStrategy Buys Another 7,420 Shares #Bitcoin In the amount of $458.2 million. pic.twitter.com/4nBm3EUH6M
— Bitcoin Magazine (@BitcoinMagazine) September 20, 2024
Since 2020, MicroStrategy has adopted a Bitcoin-focused institutional strategy, leveraging Bitcoin’s potential as an inflation hedge and store of value. The company has raised over 252,000 Bitcoins worth over $15 billion, significantly increasing shareholder value.
MicroStrategy borrowed money by issuing convertible senior notes to finance its purchases of Bitcoin. It has recently raised over $1 billion. Through securities offerings, in part to acquire more bitcoin. Other public companies have imitated this “buy bitcoin” strategy to capitalize on bitcoin’s growth.
MicroStrategy’s bitcoin purchases are akin to a large-scale “speculative attack” on fiat currencies. By exchanging fiat currencies for scarce bitcoin when they are undervalued, the company could reap huge returns if bitcoin continues to rise in value as a global digital store of value.
The company is taking on the biggest speculative challenge to fiat currency in history by adding the most resilient asset to its treasury. Other public companies have begun to emulate MicroStrategy by implementing Bitcoin treasury strategies and taking Bitcoin exposure on their balance sheets.