'Bitcoin Whale' MicroStrategy Purchases Additional 55,500 Coins

Holding 386,000 Units, Approximately 2% of Total Circulation

MicroStrategy, a U.S. enterprise software company that is 'all-in' on Bitcoin investment, has purchased over 50,000 more Bitcoins. The total number of Bitcoins currently held by the company accounts for about 2% of the total circulating supply.

Michael Saylor, co-founder and chairman of MicroStrategy, stated on his X (formerly Twitter) on the 25th (local time), "The company has purchased an additional 55,500 Bitcoins worth approximately $5.4 billion," adding, "As of the 24th, the company's Bitcoin holdings have reached 386,700." This represents about 2% of the approximately 19.8 million Bitcoins currently in circulation.

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According to documents submitted to the U.S. Securities and Exchange Commission (SEC), MicroStrategy purchased 55,500 Bitcoins over about a week from the 18th to the 24th, funding the purchase through a $3 billion convertible bond issuance and common stock sales. This comes just a week after buying 51,780 Bitcoins from the 11th to the 17th.

Having become the world's largest Bitcoin-holding company, MicroStrategy has actively purchased Bitcoin since 2020 as a hedge against inflation (risk diversification). Initially, the company bought Bitcoin using operating funds, and later through funds raised by issuing stock and convertible bonds. Previously, Chairman Saylor named this strategy the 'BTC (Bitcoin) Yield,' explaining that the more Bitcoin the company holds, the higher the stock price rises, allowing the company to sell shares and buy more Bitcoin.

Michael Saylor, co-founder of MicroStrategy. Photo by CNBC

Bloomberg estimates the value of MicroStrategy's Bitcoin holdings at about $38 billion (approximately 53 trillion KRW), noting that among companies in the S&P 500 index, only 12?including Apple ($156.7 billion) and Alphabet, Google's parent company ($93.2 billion)?hold more cash and marketable securities. Thanks to continuous Bitcoin purchases, the company's stock price soared from $63 at the end of last year to $421 as of the 22nd, rising about 600% this year alone. However, the stock price fell about 4% on that day.

MicroStrategy's ongoing purchases are based on the belief that Bitcoin's price, nearing $100,000, will continue to rise. Under a potential second Trump administration, there are forecasts that the price could surpass $500,000 due to regulatory easing policies for the cryptocurrency industry. As of 6:55 PM Eastern Time on the same day, Bitcoin was trading at around $93,006 per coin on Coinbase, down about 5% from the previous day.

Lance Vitanza, an analyst at TD Cowen, commented, "Applying leverage amplifies gains and losses alike. The only novel aspect here is that MicroStrategy is the first company to apply leverage investing to Bitcoin."