MicroStrategy Goes on Its Biggest Bitcoin Shopping Spree Yet, Now Owns 331,200 BTC Worth $16.5B

The man behind this relentless Bitcoin buying is Michael Saylor, the company's co-founder and chairman.

MicroStrategy went on a massive Bitcoin shopping spree, spending $4.6 billion between November 11 and 17. The company now owns 51,780 Bitcoin, bringing its total stash to over $29 billion.

The man behind this relentless Bitcoin buying is Michael Saylor, the company’s co-founder and chairman. Back in 2020, Saylor bet on Bitcoin as a hedge against inflation. Initially, the company used cash for its purchases, but Saylor upped the ante.

Now, MicroStrategy sells stocks and issues convertible debt to bankroll its Bitcoin addiction. If you think $4.6 billion is crazy, Saylor says the company plans to raise $42 billion over the next three years. He’s not slowing down.

How the Bitcoin obsession affects MicroStrategy’s stock Naturally, MicroStrategy’s stock (MSTR) price moves like it’s tied to Bitcoin with an invisible leash. On November 18, MSTR shares opened at $370.01. The price bounced between $339.37 and $377.34 throughout the day.

The company’s market cap now sits at $74.94 billion, with 15.2 million shares traded that day. While that volume is slightly below its average of 16.9 million shares, it’s clear investors are keeping a close eye on every move the company makes.

If Bitcoin goes up, MSTR usually follows. If Bitcoin tanks, well, you can guess what happens to the stock. MicroStrategy now owns 331,200 Bitcoin. That’s worth a staggering $16.5 billion based on what the company spent to accumulate it.

The average cost? About $49,874 per Bitcoin. Compare that to the $88,627 average price tag for this latest haul, and you see just how committed they are—even at sky-high prices.

Funding the spree: Shares, debt, and high stakes Let’s talk money. How does a company spend billions on Bitcoin without draining its coffers? MicroStrategy has turned to selling shares under a sales agreement and issuing convertible debt to fund its buying binges.

This approach allows the company to use investor money to keep its Bitcoin ambitions alive. But it’s also risky. The company’s entire future hinges on Bitcoin continuing to rise in value. If it doesn’t, they’re in trouble. Saylor doesn’t seem fazed though. He’s doubling down.

Meanwhile, the stock’s technical setup is also worth noting. Analysts peg its support level at $271.18. If the price dips there, it might attract more buyers. On the flip side, resistance sits at $384.83. This is the point where traders could start selling, pushing the stock back down.

MicroStrategy’s financials, however, paint a less rosy picture. The company reports an earnings per share (EPS) of -$2.49. Its price-to-earnings ratio is a grim -148.41. But for now, the market seems willing to overlook these red flags.

MicroStrategy’s Bitcoin gamble has allowed it to outshine some major players in the tech and crypto space. Tesla, for instance, is trading at $275.00 per share but grappling with production delays and rising competition in the electric vehicle (EV) market.

Coinbase is another story. Trading at $75.00, the crypto exchange has faced regulatory headwinds and a decline in trading volumes. Even NVIDIA, a tech titan trading at $440.00, has faced setbacks due to market corrections. Other players like Block and Palantir are also lagging behind.