MicroStrategy added 1,070 BTC worth $101 million to its portfolio, bringing its total holdings to 447,470 BTC with a 62% profit margin.
By Bhushan Akolkar
Edited by Marco T. Lanz
Updated
3 mins read
MicroStrategy continues its Bitcoin buying spree, adding 1,070 BTC $104 324 24h volatility: 0.1% Market cap: $2.07 T Vol. 24h: $48.33 B to its kitty for an investment value of $101 million. The announcement has triggered optimism as Bitcoin price surged 3.6% shooting past the crucial resistance of $100K.
As per the company disclosure, this purchase happened around December 30 when the BTC price was trading at $94,000. As a result, the MSTR stock price is up by another 4.5% today, shooting past $350 levels as of press time.
This is the first BTC purchase after MicroStrategy announced that it will use perpetual preferred stock to raise funds for more purchases. Also, it is the ninth- consecutive week of purchases by the company as executive chairman Michael Saylor doubles down on the company’s Bitcoin acquisition strategy.
With its latest purchase, MicroStrategy holds a total of 447,470 BTC worth $45.3 billion as of the current price and an average purchase price of $62,470. Thus, the company is sitting on 62% profit on its investment value.
For the fourth quarter, the Bitcoin holding company reported another $1 billion of impairment losses. However, as the company now switches to fair-value accounting for its crypto holdings, its balance sheet will go from $17.9 billion to just under $24 billion. Also, for Q4 2024, MicroStrategy generated a BTC yield of 48% and a massive 74.3% for the financial year (FY) 2024.
For the year 2024, the MicroStrategy (MSTR) stock rallied by a staggering 330% while outperforming Bitcoin gains by a margin of 3x. Benchmark analysts Mark Palmer, have reiterated their “buy” rating on the stock, setting a price target of $650. This represents a 91% upside from its current price—highlighting the company’s growing Bitcoin holdings and the promising potential of its software business.
“We believe MSTR’s plan to tap the perpetual preferred market underscores the shareholder value it has been creating through its treasury operations, which helps to justify the premium to the company’s net asset value at which its stock trades”, Benchmark analyst Mark Palmer noted.
Last Friday, MicroStrategy announced its plan to raise $2 billion in Q1 2025 through one or more offerings of perpetual preferred stock, which will take priority over its Class A common stock. It’s part of the company’s broader strategy of securing $42 billion in capital by 2027 via at-the-market stock sales and convertible debt offerings.
Executive chairman Michael Saylor stated that the company has already achieved two-thirds of its equity-raising target. MicroStrategy requires ongoing capital infusion to continue its Bitcoin acquisition strategy, as its core software business has reported net losses in three of the past four quarters.
Palmer highlighted that issuing perpetual preferred stock could attract a more conservative investor base, such as insurance companies, pension funds, and banks, seeking lower-volatility investments.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
