(Bloomberg) – MicroStrategy Inc. (MSTR) bought about 27,200 Bitcoin (BTC-USD) for about $2.03 billion, the biggest purchase by the crypto hedge fund since just after it started acquiring the digital asset more than four years ago.
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The enterprise software maker, whose business strategy now includes buying the cryptocurrency, bought the tokens between Oct. 31 and Nov. 10, according to a statement on Monday. It is the largest number of tokens purchased since the company announced in December 2020 that it had mined 29,646 Bitcoin.
MicroStrategy co-financier and chairman Michael Saylor decided to invest in Bitcoin in 2020 as a hedge against inflation. The company initially used cash to make the purchases, and has transitioned to using proceeds from issuing and selling shares, as well as selling convertible debt, to increase its purchasing power.
The strategy, along with the rise in Bitcoin’s value, has helped MicroStrategy outperform all major U.S. stocks since mid-2020, including AI Bellwether Nvidia Corp.. Shares of MicroStrategy are up more than 2,300% since August 2020 . Bitcoin has risen approximately 630% in the same period.
The latest purchase boosted MicroStrategy’s Bitcoin holdings to about $23 billion, based on Monday’s record price of more than $82,600 for the digital coin. Bitcoin has been boosted by new US President Donald Trump’s embrace of the asset class. MicroStrategy is the larger publicly traded company holder of Bitcoin alongside BlackRock’s US listed fund.
As of November 10, the Tysons Corner, Virginia-based company, along with its subsidiaries, owned approximately 279,420 Bitcoin, valued at an aggregate purchase price of approximately $11.9 billion and an average purchase price of approximately $42,692 per Bitcoin, including fees and expenses. expenditure.
The company’s shares rose as much as 11% to $299.50 on Monday. That’s just shy of the all-time high set in March 2000, when MicroStrategy was one of the hottest stocks during the so-called Internet bubble.
Saylor was one of three MicroStrategy executives who agreed in December 2000 to pay $11 million to settle the U.S. Securities and Exchange Commission.
(Updates throughout story to add details, prices and history)
