Microstrategy, the software intelligence giant, has made waves in the crypto world by acquiring 11,000 bitcoins worth $1.1 billion. This latest purchase brings its total holdings to a staggering 461,000 BTC, solidifying its position as a major player in the cryptocurrency market.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the company funded this acquisition by selling 3,012,072 Class A common stock shares between January 13 and January 20. This raised $1.1 billion in net proceeds, further demonstrating the firm’s commitment to its Bitcoin strategy.

Microstrategy’s Bitcoin Portfolio at a Glance

The company’s total investment in Bitcoin now stands at $29.3 billion, with an average purchase price of $63,610 per BTC. This latest acquisition was executed at an average cost of $101,191 per Bitcoin, inclusive of all fees and expenses.

Despite the high entry price, Executive Chairman Michael Saylor remains optimistic. His long-term projection envisions Bitcoin prices reaching anywhere between $3 million and $49 million per coin by 2045. He attributes this growth to Bitcoin’s finite supply and its potential role as a hedge against inflation.

BTC Yield: A Key Metric for Investors

Microstrategy introduced a performance indicator called BTC Yield to evaluate the shareholder impact of its Bitcoin strategy. BTC Yield reflects the percentage change in Bitcoin holdings relative to the company’s diluted share count.

As of January 20, the company reported a BTC Yield of 1.69% year-to-date. While useful, Microstrategy acknowledges the metric’s limitations, such as not accounting for liabilities or other financial obligations. Nevertheless, it provides a unique lens for investors to understand the firm’s capital allocation strategy.

A Visionary Bet on Bitcoin’s Future

Saylor has repeatedly championed Bitcoin as a transformative asset. His projections for Bitcoin’s price range from a conservative $3 million to a bullish $49 million by 2045. He argues that as adoption grows, Bitcoin’s volatility will diminish, further solidifying its status as digital gold.

Microstrategy’s unwavering belief in Bitcoin underscores its role as a leader in corporate crypto adoption. Whether this audacious strategy pays off in the long term remains to be seen, but the company’s bold approach continues to shape the narrative around institutional Bitcoin investment.

Microstrategy’s $1.1 billion Bitcoin acquisition marks another milestone in its aggressive crypto strategy. By betting big on Bitcoin, the company has reinforced its position as a pioneer in corporate cryptocurrency investments. For now, all eyes are on Bitcoin’s trajectory and how Microstrategy’s bold moves will resonate with shareholders and the broader market.