On Friday local time, Michael Saylor, the founder of MicroStrategy, announced that the company has purchased $1.1 billion worth of bitcoin. As a result of this news, MicroStrategy's stock price rose more than 8% on Friday, closing at $141.47.
On September 14th, according to Cailian News, MicroStrategy, a listed US company known for its business intelligence software, has gained fame by buying a large number of bitcoins, linking the fate of the company with bitcoin.
On Friday local time, MicroStrategy founder Michael Saylor announced that the company has purchased $1.1 billion worth of bitcoin.
As a result of this news, MicroStrategy's stock price rose more than 8% on Friday, closing at $141.47.
In a post on social media platform X, Saylor stated that over the past four years, MicroStrategy's average purchase price of bitcoin was $38,585 per coin, while the current trading price of bitcoin is close to $600,000.
As of now, MicroStrategy holds a total of 244,800 bitcoins, valued at $14.6 billion.
MicroStrategy was founded in 1989 and its business involves enterprise software and cloud-based services, but the company's value is now almost entirely tied to bitcoin ownership. MicroStrategy is the largest publicly traded company holding bitcoin, far surpassing companies like Tesla and Block who also invest in bitcoin.
Creating value for shareholders by trading in bitcoin.
In Saylor's post on Friday, he also mentioned that the "Bitcoin Yield" (an indicator introduced by MicroStrategy) will reach 17% this year. This number indicates that the company has created a value of 17% for shareholders by selling stocks to buy bitcoin.
"We are basically providing people with different types of bitcoin investment opportunities," Saylor said in a recent media interview. "MicroStrategy's mission is to securitize bitcoin and act as a bridge between traditional, mainstream investors and bitcoin."
MicroStrategy's stock price has risen 24% this week and has doubled so far this year. However, even after this week's rebound, the stock has still fallen about 26% from its high in March.
However, MicroStrategy's stock performance has been much better than bitcoin, which has risen 35% this year.
Saylor stated that holding MicroStrategy stock is a way to invest in bitcoin, but it has some advantages that direct bitcoin investment does not have, such as adding downside protection.