(Bloomberg) — MicroStrategy Inc. bought about 27,200 Bitcoin for about $2.03 billion, the biggest purchase by the crypto hedge fund proxy since just after it started acquiring the digital assets 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 player Nvidia Corp.. Shares of MicroStrategy are up more than 2,500% since August 2020 increased. increased by approximately 660% over the same period.
The latest purchase boosted MicroStrategy’s Bitcoin holdings to about $24 billion, based on Monday’s record price of more than $86,500 for the digital coin. Bitcoin has been boosted by new US President Donald Trump’s embrace of the asset class. MicroStrategy is the largest publicly traded company holder of Bitcoin alongside BlackRock’s US exchange-traded 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 24% to a record $335 on Monday. That surpassed the previous 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 stating that the stock price rose to an all-time high in the penultimate paragraph.)
