MicroStrategy CEO Michael Saylor announced on September 20 that he bought an additional 7,420 bitcoins for about $489 million. The company now owns more than 252,000 Bitcoin, which was acquired for $9.9 billion.
OUT: MicroStrategy buys 7,420 more #Bitcoin for $458.2 million. pic.twitter.com/4nBm3EUH6M
– Bitcoin Magazine (@BitcoinMagazine) September 20, 2024
Since 2020, MicroStrategy has adopted a Bitcoin-centric business strategy, using Bitcoin’s power as an inflation hedge and store of value. The company has amassed more than 252,000 bitcoins worth more than $15 billion, significantly increasing shareholder value.
MicroStrategy borrowed money by issuing senior convertible notes to finance its Bitcoin purchases. It recently raised more than $1 billion in note offerings, in part to acquire more Bitcoin. Some public companies have imitated this “buy Bitcoin” business strategy to take advantage of Bitcoin’s growth.
MicroStrategy’s purchase of Bitcoin amounts to a massive “hypothetical attack” against fiat currencies. By exchanging fiat for rare bitcoin when it is undervalued, the company can reap huge profits if bitcoin continues to value them as the world’s digital store of value.
The company is making the biggest speculative challenge against a fiat currency in history by adding a resilient asset to its treasury. Some public companies are starting to emulate MicroStrategy by implementing Bitcoin treasury strategies and gaining Bitcoin exposure on their balance sheets.