MicroStrategy has bagged a new 15,350 Bitcoin stash to increase its total holdings to 439,000 BTC.
American business intelligence and software firm MicroStrategy Inc (NASDAQ: MSTR) is again making headlines for its continued massive investment in Bitcoin BTC $116 743 24h volatility: 0.2% Market cap: $2.32 T Vol. 24h: $27.14 B . The firm has recently purchased an additional 15,350 BTC for about $1.54 billion, marking a new high in its acquisition streak.
This action further cemented its place as one of the largest corporate holders of Bitcoin. The purchase follows a series of major Bitcoin investments and demonstrates the company’s unwavering commitment to its long-term strategy.
MicroStrategy on A Mission to Expand its Bitcoin Hoard
MicroStrategy’s latest acquisition, completed between December 9 and 15, saw the firm purchase Bitcoin at an average price of $100,386 each.
This brings the company’s total Bitcoin holdings to a staggering 439,000 BTC, valued at over $45 billion. The total cost of these holdings is around $27.1 billion, acquired at an average price of $61,725 per Bitcoin.
MicroStrategy has acquired 15,350 BTC for ~$1.5 billion at ~$100,386 per #bitcoin and has achieved BTC Yield of 46.4% QTD and 72.4% YTD. As of 12/15/2024, we hodl 439,000 $BTC acquired for ~$27.1 billion at ~$61,725 per bitcoin. $MSTR https://t.co/SaWLNBVkrl
— Michael Saylor⚡️ (@saylor) December 16, 2024
What sets this purchase apart is not just its size. It hinges on the fact that the company has now made six consecutive weeks of Bitcoin acquisitions. This is considered a positive bet, with the price of Bitcoin recently reaching an all-time high of $106,352.
MicroStrategy’s Bitcoin holdings now represent about 2.1% of Bitcoin’s total 21 million supply. Over the years, MicroStrategy has used stock and debt to fund these Bitcoin purchases.
The company often raise funds by selling its shares and issuing convertible senior notes in a private offering. By December 15, it still had around $7.65 billion worth of shares left to sell as part of a larger plan to raise $42 billion. This approach is part of MicroStrategy’s plan to keep growing its Bitcoin holdings.
Despite investor concerns regarding MicroStrategy’s use of debt and stock sales for Bitcoin purchases, analysts at Bernstein remain confident in the firm’s capacity to maintain its aggressive acquisition strategy.
Their outlook suggests that as Bitcoin’s price increases, MicroStrategy’s value will stabilize. This strategy would allow the company to manage its debt and raise more money.
The Market’s Reaction
The market has reacted positively to MicroStrategy’s strategy. In 2024, MicroStrategy’s stock price has experienced a remarkable increase of over 490%, powered by its Bitcoin strategy. The company’s recent addition to the Nasdaq-100 index added to this momentum. This means more institutional investors are likely to buy MicroStrategy shares.
Analysts predicted the company could attract at least $2.1 billion in buying activity from exchange-traded funds (ETFs) that track the index. This achievement also makes it possible for MicroStrategy to join the S&P 500 Index in the future. If achieved, it may further strengthen its market position.
The company’s software business continues to struggle with inconsistent profits, presenting a significant challenge. Nevertheless, anticipated changes in Bitcoin valuation methods in 2025 could bolster the company’s finances and enhance its prospects for S&P 500 inclusion.
MicroStrategy’s aggressive Bitcoin acquisition is not about quick profits; it is focused on the long term. The company believes Bitcoin will be more valuable than traditional assets like gold, and predicts it might top $1 million per coin.
While some investors remain cautious about this bold plan, MicroStrategy’s leadership is committed to holding onto Bitcoin until it reaches that goal.
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