MicroStrategy’s Michael Saylor Hints at Bitcoin Acquisition with Cryptic Tweet

Posted by Jonathan Dharmist on June 8, 2024

Chart Post Indicates Potential M&A Move

On June 8, MicroStrategy executive chairman Michael Saylor shared a chart displaying the company’s substantial Bitcoin holdings. The visual post suggests an impending acquisition, aligning with the company’s pattern following Saylor’s frequent cryptic messages on X.

Should MicroStrategy follow the “Send more Orange” tweet with another BTC purchase, this would extend a record nine consecutive weeks of buying the cryptocurrency.

Recent Acquisition Adds 705 BTC at Near Record Highs

This latest posting comes only weeks after MicroStrategy acquired an additional 705 BTC. The timing of this purchase was between May 26 and June 1, valued at approximately $75 million, acquired at an average premium price of $106,495 per coin.

These purchases have significantly increased the company’s total Bitcoin holdings to an estimated 580,955 BTC, marking a nearly 84% increase from their holdings in early 2024.

Strategy's History of Bitcoin Acquisition — *Strategy’s significant Bitcoin accumulation. Source: SaylorTracker*

Substantial Gains Despite Market Fluctuations

Data analysis indicates MicroStrategy’s value related to Bitcoin has appreciated significantly on its investment. Calculated unrealized profits are estimated at around $20.6 billion, representing a roughly 50% increase.

Funding Acceleration via $1 Billion Preferred Stock Offering

Saylor’s post immediately preceded the company’s announcement of a $1 billion stock offering. This involves issuing 11.76 million shares of 10.00% Series A Perpetual Stride Preferred Stock, priced at $85 per share. MicroStrategy anticipates raising just under $979 million after deducting fees.

This preferred stock offering appeals particularly to institutional investors seeking yield, featuring a non-cumulative 10% dividend rate. It signals a strategic shift towards balancing investor returns with the company’s aggressive Bitcoin accumulation plan.

Largest Corporate Bitcoin Holder by a Significant Margin

Independent data confirms MicroStrategy remains the single largest entity holding known quantities of Bitcoin. The company’s holdings exceed the combined known BTC reserves of the United States and China, and they are roughly 12 times greater than the second-largest holder, Bitcoin miner Marathon Digital (MARA).

The company is widely viewed as having become effectively a “corporate Bitcoin wrapper,” allowing institutional investment into the cryptocurrency.