Earlier today, MicroStrategy stock reached $196, just 2% away from its all-time high, largely driven by its aggressive Bitcoin acquisition strategy.

The company’s stock behaves like a leveraged version of Bitcoin during bullish phases, reflecting the close correlation between the two. CryptoQuant, an on-chain analytics firm, commented on the matter. 

Since August 2020, when MicroStrategy began purchasing Bitcoin, its stock has surged by a remarkable 1,208%, while Bitcoin itself has risen by 445%. Under the leadership of Michael Saylor, MicroStrategy has continually raised capital to expand its Bitcoin holdings.

As of its latest filing in September, 2024, MicroStrategy holds 252,220 bitcoins, accounting for 1.2% of the total Bitcoin supply. 

Currently, MicroStrategy’s Bitcoin holdings are valued at around $16 billion, with an average purchase price of just over $39,000 per Bitcoin. In comparison, Bitcoin’s current market price is around $62K.

With over $1 billion in available funds, MicroStrategy is expected to further increase its Bitcoin holdings, potentially surpassing Grayscale’s current total of 254,000 bitcoins. This would position MicroStrategy as one of the largest holders of Bitcoin, trailing only entities like BlackRock, Binance, and Coinbase, which hold Bitcoin on behalf of clients. 

Michael Saylor’s vision to make MicroStrategy a major player in the Bitcoin market has driven the company to use capital markets to fund its aggressive purchasing strategy.