MicroStrategy buys more than 27,000 Bitcoins and shares rise 8%

Just over 10 days after announcing a bold Bitcoin (BTC) purchase strategy, MicroStrategy announced the purchase of 27,200 new BTC. According to the company, the amount paid for BTC was US$2 billion.

As a result, the company created by Michael Saylor holds 279,420 BTC and isolates itself as the listed company with the largest cryptocurrency cash. Furthermore, the announcement of the new purchase comes amid a strong rise in Bitcoin, which reached new historic highs this Monday (11).

According to CoinGecko, BTC reached US$84,560, an increase of 6% in 24 hours, which leaves MicroStrategy with an unrealized profit of US$10 billion. Meanwhile, the company's shares rose 8% shortly after the announcement.

A MicroStrategy adquire 27.200 BTC

MicroStrategy announced in a press release that it acquired 27,200 BTC for $2 billion. The company's average price in this operation was US$74,463 per Bitcoin and the purchase took place between October 31st and November 10th.

This brings the company's cash to 279,420 BTC, which it acquired for a total of US$11.9 billion. The company's average total price is $42,692 per BTC – more than double the cryptocurrency's current price.

The company also revealed that it obtained a return of 7.3% on its BTC in the quarter and 26.4% in the year to date, as of the date of publication of this text.

For MicroStrategy, BTC yield is a key performance indicator (KPI), which “represents the period-to-period percentage change in the ratio between the company's bitcoin holdings and its Assumed Diluted Shares Outstanding.”

This comes at a time when the price of Bitcoin is reaching all-time highs, which has already set the company's investment at an unrealized profit of more than $10 billion. MicroStrategy has continued acquiring since August 2020 as part of a “Bitcoin Strategy” that Michael Saylor developed.

MSTR shares rise 8%

Data from TradingView shows that MicroStrategy (MSTR) shares rose 8% amid this Bitcoin acquisition announcement. In other words, two percentage points more than BTC, which accumulates gains of 6% on the day.

MSTR shares are up more than 300% year to date, outperforming Bitcoin and other major assets in the process. Interestingly, the shares have appreciated more than 1,000% since the company started buying BTC in 2020.

Cryptocurrency analyst Willy Woo recently predicted that MicroStrategy could see $10 billion in inflows if it eventually became part of the S&P 500. This could send the stock soaring to $500, nearly 100% higher than its current price ($315).

Meanwhile, in addition to a possible inclusion in the S&P 500, the stock's trajectory is also bullish as MicroStrategy plans to continue buying more Bitcoin. The company recently announced plans to raise $42 billion through sales of stocks and fixed-income securities to buy more BTC, the so-called “21/21 Plan.”