MicroStrategy made a billion-dollar purchase of Bitcoin.

MicroStrategy's Bitcoin strategy is financed through the company's stock sales. A sale of 13,593,865 shares was executed for the latest purchases. The company's investment plan for the next three years is even more ambitious. A total capital increase of $42 billion is targeted, consisting of a planned $21 billion equity offering and $21 billion in fixed-income securities. As part of this plan, the company currently has approximately $15.3 billion worth of shares ready for sale.

MicroStrategy Aims for Record with $4.6 Billion Bitcoin Purchase

MicroStrategy's recent Bitcoin purchase marks the beginning of a new era in institutional crypto adoption. Under the leadership of the company's executive chairman Michael Saylor, strategic moves were made to pay approximately $4.6 billion for 51,780 BTC. With these purchases, the company's average cost per Bitcoin has decreased to $49,874, while the total investment cost, including fees and expenses, has reached approximately $16.5 billion.

According to details in the 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC), this purchase has been recorded as the company's largest Bitcoin acquisition set to date. The performance indicator developed by the company, called "Bitcoin Yield," measures the ratio of the increase in Bitcoin assets to the diluted number of shares and has recorded a 41.8% increase since the beginning of the year. This ratio demonstrates the effectiveness of the strategy the company has implemented to balance the dilution effect on its shares.

With a total portfolio value reaching $29.7 billion, the company is solidifying its leading position in institutional Bitcoin investments through both the size of its purchases and its long-term investment strategy. The company's planned investment target of $42 billion for the next three years is interpreted as a strong sign that institutional crypto adoption may accelerate.