MicroStrategy’s $2 billion Bitcoin purchase is the largest since 2020

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(Bloomberg) — MicroStrategy Inc . bought about 27,200 Bitcoins for about $2.03 billion, the largest purchase by the crypto hedge fund’s proxy since just after it began acquiring the digital asset more than four years ago.

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The enterprise software maker, whose corporate strategy now includes buying the cryptocurrency, bought the tokens between Oct. 31 and Nov. 10, according to a statement Monday. It is the largest amount of tokens purchased since the company announced in December 2020 that it received 29,646 Bitcoin.

MicroStrategy co-funder and chairman Michael Saylor decided to invest in Bitcoin in 2020 as a hedge against inflation. The firm initially used cash to make the purchases and has switched to using the proceeds from the issue and sale of shares and the sale of convertible debt to leverage its purchasing power.

The strategy, along with the rise in the value of Bitcoin, has helped MicroStrategy outperform all major U.S. stocks, including AI bellwether Nvidia Corp., since mid-2020. MicroStrategy’s stock is up more than 2,500% since August 2020. Bitcoin is up about 660% over the same period.

The latest purchase lifted MicroStrategy’s Bitcoin holdings to about $24 billion, based on Monday’s record price of more than $86,500 for the digital currency. Bitcoin has received a boost from incoming US President Donald Trump’s embrace of the asset class. MicroStrategy is the largest publicly traded company holder of Bitcoin besides BlackRock’s US exchange-traded fund.

Per As of Nov. 10, the Tysons Corner, Virginia-based company, together with its subsidiaries, owned approximately 279,420 Bitcoins, valued at a total purchase price of approximately $11.9 billion and an average purchase price of approximately $42,692 per Bitcoin, including fees and expenses.

The company’s shares rose as much as 24% to a record high of $335 on Monday. It topped the previous record high in March 2000, when MicroStrategy was among the most popular stocks during the so-called Internet bubble.

Saylor was one of three MicroStrategy executives who in December 2000 agreed to pay $11 million to settle US Securities and Exchange Commission fraud charges that they had the company inflate its financial results for 21 months.

(Updates to say the stock price rose to an all-time high in the second-to-last episode.)