Software firm cum Nasdaq-listed bitcoin proxy MicroStrategy Incorporated (NASDAQ:MSTR) is not allowing all-time high bitcoin prices to dissuade it from buying vast sums of the world’s largest cryptocurrency.
Under the command of founder and bitcoin maximalist Michael Saylor, MicroStrategy bought another 27,200 bitcoins for $2.03 billion in cash between October 31 and November 10.
It brings MicroStrategy’s stockpile to 279,420 bitcoins, which is worth more than $23 billion at current spot prices of $83,500. It is the largest bitcoin reserve of any corporation globally, representing around 1.4% of bitcoin’s market capitalisation.
According to MicroStrategy, the dollar cost average of its bitcoin arsenal is approximately $42,692, making it a highly profitable gamble for Saylor.
Microstrategy declared a bitcoin ‘yield’ of 26.4% year to date.
Not to be confused with traditional performance ratios, this bitcoin yield measures the percentage change between Microstrategy’s bitcoin holdings and fully diluted shares.
It is intended to give shareholders (and debtholders with convertible notes) a measure of Microstrategy’s bitcoin treasury growth against its fully diluted share count.
A positive yield suggests that Microstrategy’s master plan of issuing shares to buy bitcoin has paid off handsomely this year.
Alongside the strong appreciation of its primary treasury asset, Microstrategy’s share price has grown exponentially this year.
It is currently at an all-time high of $308.22, having soared 350% year to date.
Bitcoin has soared in value since Donald Trump’s successful reelection as US president. He has promised to usher in pro-crypto policies, inlcuding the removal of renowned crypto sceptic and Securities and Exchange Commission (SEC) chair Gary Gensler.