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MicroStrategy Adds 12,000 BTC, Bolsters ETF Alternative Case

2 mins
Updated by Ali Martinez
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In Brief

  • MicroStrategy bought 12,000 BTC, now holds 205,000 BTC, and continues betting on Bitcoin's superiority over established assets.
  • The BTC was purchased with proceeds from convertible notes & excess cash, totaling $821.7M, translating to $68,477 per Bitcoin.
  • MicroStrategy asserts its stock is better than BTC ETFs, offering greater control over capital structure sans management costs.
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According to the executive chairman and head of Bitcoin strategy, Michael Saylor, MicroStrategy has bolstered its Bitcoin holdings by acquiring 12,000 BTC for around $821.7 million.

With this latest acquisition, as of March 10, 2024, MicroStrategy now holds 205,000 BTC.

MicroStrategy’s $6.91 Billion Bitcoin Investment

The purchase, made using proceeds from convertible notes and excess cash, translates to roughly $68,477 per BTC. With this latest acquisition, as of March 10, 2024, MicroStrategy now holds 205,000 BTC, acquired for approximately $6.91 billion at an average price of $33,706 per BTC.

The company previously bought 3,000 BTC, which caused MicroStrategy’s Bitcoin holdings to exceed $10 billion. The move comes as the firm, whose primary product is business intelligence software, bets on Bitcoin’s superiority over other assets. 

“Bitcoin’s competing against gold, which is 10x. What it is right now, it’s competing against the S&P index, it’s competing against real estate, $100 trillion plus asset class as a store of value. We believe capital is going to keep flowing from those asset classes into Bitcoin because Bitcoin is technically superior to those asset classes,” Saylor said.

Read more: Who Owns the Most Bitcoin in 2024?

MicroStrategy’s journey began in August 2020 when it announced its first major investment in Bitcoin, purchasing approximately 21,454 BTC, worth over $250 million. Since then, it has amassed the largest corporate holdings of Bitcoin globally.

For a time, some investors considered MicroStrategy stock a proxy for Bitcoin. However, the approvals of Bitcoin exchange-traded funds in January have offered an alternative. Investors are choosing to get exposure to Bitcoin through these ETFs via their tax-advantaged retirement and brokerage accounts.

Demand for BlackRock’s IBIT Bitcoin Strategy ETF has been skyrocketing, with assets under management topping $10 billion last week.

MicroStrategy previously made its case as a superior alternative to Bitcoin ETFs. It was argued that investors in MSTR stock have control over the company’s capital structure, as MicroStrategy is an operating company. This privilege is unlike that of a spot ETF issuer, a trust company.

Unlike Bitcoin ETF issuers, MicroStrategy charges shareholders no management fee and the company can also innovate and generate new cash flows.

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David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
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