The price of MicroStrategy stock increases by 8% following the company's announcement that its bitcoin holdings have been increased to $14.6 billion.

• MicroStrategy shares rose 8% on Friday and 24% for the week.
• Michael Saylor, the founder and chairman, announced that the company has added $1.1 billion in bitcoin to its holdings.
• The value of the company's 244,800 bitcoin at the current price is $14.6 billion.

On Friday, MicroStrategy's shares surged over 8% following founder Michael Saylor's announcement that the company had purchased an additional $1.1 billion in bitcoin.

The stock experienced a 24% increase in value during the week and has risen 124% overall this year.

According to Saylor's post on X, MicroStrategy's average purchase price for bitcoin over the past four years is $38,585 per coin. Currently, bitcoin is trading at around $60,000.

MicroStrategy's stash of 244,800 bitcoins is worth $14.6 billion.

Since its inception in 1989, MicroStrategy has primarily focused on enterprise software and cloud-based services. However, the company's worth is now almost entirely linked to its bitcoin ownership, making it a proxy for the world's largest cryptocurrency. As the largest corporate holder of the asset, according to BitcoinTreasuries, MicroStrategy's value is heavily tied to the performance of bitcoin.

In his Friday post, Saylor stated that the "BTC yield," a metric introduced by MicroStrategy, indicates that the company has generated 17% more value for shareholders by selling stock to purchase bitcoin.

"MicroStrategy's mission is to provide different types of bitcoin exposure to people and act as an institutional bridge between traditional investors and bitcoin, as stated by Saylor in a CNBC interview."

Despite the recent rally, MicroStrategy shares are still 26% below their March peak, with a closing price of $141.47 on Friday.

Bitcoin is up 35% for the year, but MicroStrategy is outperforming it. Saylor believes that owning MicroStrategy provides a way to invest in bitcoin with additional benefits, such as increased leverage or downside protection.

"Many individuals do not desire or are unable to own bitcoin," Saylor stated. Some would argue, "Give me the volatility of the S&P and half of bitcoin's performance, and I would be content," he said.

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