MicroStrategy’s $2 billion bitcoin buy is largest since 2020
The enterprise software maker, whose corporate strategy now includes buying the cryptocurrency, bought the tokens between Oct. 31 and Nov. 10, according to a statement on Monday. It’s the largest amount of tokens purchased since the firm announced in December 2020 that it snapped up 29,646 Bitcoin.
MicroStrategy co-funder and Chairman Michael Saylor decided to invest in Bitcoin in 2020 as a hedge against inflation. The firm initially used cash to make the purchases, and has shifted to using the proceeds from the issuance and sale of stock, as well as convertible debt sales to leverage its buying power.
The strategy, along with the surge in the value of Bitcoin, has helped MicroStrategy to outperform every major US stock, including AI bellwether Nvidia Corp., since the middle of 2020. MicroStrategy’s stock has risen more than 2,500% since August 2020. Bitcoin is up around 660% during the same period.
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The latest purchase raised MicroStrategy’s Bitcoin holdings to around $24 billion, based on Monday’s record price of more than $86,500
