MicroStrategy recently made another move, spending 4.6 billion US dollars to buy over 50,000 bitcoins in just one week, surpassing a total of 330,000 bitcoins, accounting for 1.5% of the global bitcoin supply. Founder Michael Saylor not only emphasized that bitcoin is the future of global assets, but also suggested that companies with large cash reserves like Berkshire Hathaway and Microsoft should buy bitcoin to preserve capital, serve as a reserve asset, and generate higher returns.
In the week between November 11 and November 17, MicroStrategy purchased 51,780 bitcoins at an average price of approximately $88,000 per bitcoin, spending a total of 4.6 billion US dollars. Currently, MicroStrategy holds a total of 331,200 bitcoins, with a cumulative purchase cost of approximately 16.5 billion US dollars, and an average cost of approximately $49,874 per bitcoin. MicroStrategy has become one of the publicly traded companies with the largest holdings of bitcoin, accounting for approximately 1.5% of the global bitcoin supply.
MicroStrategy announced its weekly purchase plan on its own Twitter account.
The common stock fundraising continues, with a cumulative issuance of up to 21 billion US dollars.
MicroStrategy continues to raise funds through the issuance of common stock to support bitcoin purchases. Currently, it has raised 4.6 billion US dollars, and there is an unused issuance amount of nearly 15.3 billion US dollars, mainly to provide flexibility for future purchase strategies.
The bitcoin acquisition strategy brings impressive returns, with a yield indicator of 41.8%.
According to MicroStrategy’s disclosed Bitcoin Yield KPI, the bitcoin investment return rate from January 1 to November 17 this year reached 41.8%. This indicates that MicroStrategy’s strategy of purchasing bitcoin through stock financing not only brings impressive returns but also creates long-term value for shareholders.
Calling out to Buffett and Microsoft, holding cash is not as good as buying bitcoin.
In a recent interview, Michael Saylor specifically mentioned Berkshire Hathaway, owned by Buffett, and bluntly stated that their $325 billion cash is “becoming more and more worthless”, shrinking at a rate of 12% per year, equivalent to a loss of nearly 40 billion US dollars per year. Saylor further stated that if Berkshire Hathaway invests this money in bitcoin, it can earn a return of at least 21% per year, easily making over 60 billion US dollars in profit annually. He emphasized that companies that enter the market now will be the biggest winners in the future as global capital gradually shifts to bitcoin.
Not only mentioning Berkshire Hathaway, Saylor even called out to tech giants like Microsoft. He stated that if Microsoft converts a portion of its cash to bitcoin quarterly, it can create trillions of dollars in value for shareholders in the next 10 years, increasing its market value by hundreds of billions of dollars.
The United States needs to establish a “bitcoin national reserve” to maintain its global economic leadership.
Saylor further called out to the US government, stating that the United States should establish a “bitcoin national reserve” like holding gold and purchase at least one million bitcoins, accounting for 5% of the global supply. Saylor believes that this will not only attract global capital to flow into the United States but also ensure that the United States takes the lead in the global digital economy era. He further stated, “If the United States buys 20% of the bitcoins now, the future returns will be equivalent to purchasing Manhattan Island.”
The scarcity of bitcoin is evident, and institutions have begun to position themselves.
Currently, the total global supply of bitcoin is only 21 million, of which approximately 18% has been targeted by institutions like MicroStrategy and BlackRock. Saylor believes that when a majority of bitcoin is held for the long term, its scarcity will cause the price to continuously rise, heralding an unprecedented asset revolution.