Software firm MicroStrategy grows Bitcoin portfolio

The firm’s stock has surged in 2024, fuelled by its expanding bitcoin holdings and the cryptocurrency’s growing acceptance.
MicroStrategy now holds 244,800 bitcoins, worth roughly $9.45 billion, after recent large-scale purchases.

MicroStrategy has significantly expanded its bitcoin holdings, acquiring $1.11 billion worth of the cryptocurrency between August 6 and September 12. The company now holds approximately 244,800 bitcoins, valued at $9.45 billion. The average purchase price was around $38,585 per bitcoin, including fees and expenses.

This aggressive move towards bitcoin began in 2020, as MicroStrategy sought to preserve its reserves amid declining revenue from its core software business. Its decision to prioritise cryptocurrency has drawn support from investors, linking the company’s stock performance to the fluctuating price of bitcoin.

The firm’s shares have more than doubled in 2024, while bitcoin itself has risen by nearly 31% year-to-date. The approval of spot bitcoin exchange-traded funds by the SEC, alongside backing from influential figures like Elon Musk, has contributed to the mainstream acceptance of the asset.

MicroStrategy also recently underwent a 10-for-1 stock split to increase accessibility for investors, further signalling its commitment to growth in the crypto space. Its ongoing bitcoin strategy reflects confidence in the long-term potential of the digital asset.