MicroStrategy buys an additional $489 billion worth of Bitcoin

MicroStrategy CEO Michael Saylor announced on September 20 that he 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 #Bitcoin for $458.2 million. pic.twitter.com/4nBm3EUH6M

— Bitcoin Magazine (@BitcoinMagazine) September 20, 2024

Since 2020, MicroStrategy has adopted a Bitcoin-focused corporate strategy, capitalizing on Bitcoin’s potential as an inflation hedge and store of value. The company has amassed more than 252,000 bitcoins worth more than $15 billion, substantially increasing shareholder value.

MicroStrategy borrowed money by issuing convertible senior notes to finance its Bitcoin purchases. It recently raised more than $1 billion in note offerings, in part to acquire more Bitcoin. Other public companies have imitated this corporate “buy Bitcoin” strategy to take advantage of Bitcoin’s growth.

MicroStrategy’s Bitcoin Treasury purchases are like a large-scale “speculative attack” against fiat currencies. By exchanging fiat for rare bitcoin when it is undervalued, the company could reap enormous profits if bitcoin continues to appreciate as a global digital store of value.

The company is undertaking the biggest speculative challenge against the fiat currency in history, adding the most durable asset to its treasury. Other public companies are starting to emulate MicroStrategy by implementing Bitcoin treasury strategies and gaining exposure to Bitcoin on their balance sheets.