Microstrategy CEO Michael Saylor announced On September 20, the company announced that it had acquired an additional 7,420 bitcoins for approximately $489 million. The company now holds more than 252,000 bitcoins, acquired for $9.9 billion.
BREAKING: MicroStrategy buys another 7,420 shares #Bitcoin for $458.2 million. image.twitter.com/4nBm3EUH6M
— Bitcoin Magazine (@BitcoinMagazine) September 20, 2024
Since 2020, MicroStrategy has adopted a Bitcoin-centric corporate strategy, leveraging Bitcoin’s potential as an inflation hedge and store of value. The company has accumulated over 252,000 bitcoins worth over $15 billion, substantially increasing shareholder value.
MicroStrategy has borrowed money by issuing convertible senior bonds to fund its Bitcoin purchases. It recently raised over $1 billion. Through note offerings, in part to acquire more bitcoins. Other public companies have imitated this corporate strategy of “buying bitcoins” to take advantage of the growth of the currency.
MicroStrategy’s Bitcoin Treasury bond purchases are like a large-scale “speculative attack” on fiat currencies. By exchanging fiat for scarce bitcoins when they are undervalued, the company could reap huge profits if bitcoin continues to appreciate as a global digital store of value.
The company is taking on the largest speculative challenge against fiat currency in history by adding the most resilient asset to its treasury. Other public companies are beginning to emulate MicroStrategy by implementing Bitcoin treasury strategies and gaining exposure to Bitcoin on their balance sheets.
