MicroStrategy Purchases More Bitcoin for $489 Million

MicroStrategy CEO Michael Saylor announced on September 20 that the company had purchased an additional 7,420 Bitcoin for approximately $489 million. The company now holds more than 252,000 Bitcoins acquired for $9.9 billion.

Since 2020, MicroStrategy has pursued a Bitcoin-focused corporate strategy, capitalizing on Bitcoin’s potential as an inflation hedge and store of value. The company has accumulated more than 252,000 Bitcoins worth more than $15 billion, and its value to shareholders has increased significantly.

MicroStrategy borrowed money by issuing convertible notes to fund the Bitcoin purchase. The company recently raised over $1 billion through bonds with the goal of acquiring more Bitcoin. Other publicly traded companies are also mimicking this “buy Bitcoin” corporate strategy to take advantage of Bitcoin’s growth.

MicroStrategy’s Bitcoin Treasury purchase is like a massive “speculative attack” on fiat currency. By trading for scarce Bitcoin when fiat currency is undervalued, the company could make huge profits if Bitcoin’s value continues to rise as a global digital store of value.

By adding the most resilient asset to its treasury, the company takes on the largest speculative challenge to fiat currency in history. Other publicly traded companies have also begun to emulate MicroStrategy by adopting bitcoin financial strategies and listing bitcoin on their balance sheets.