MicroStrategy Adds 1,070 Bitcoin, Boosting Total Holdings to 447,470 BTC
Business intelligence giant MicroStrategy has further solidified its position as a major Bitcoin holder, announcing the acquisition of an additional 1,070 BTC for approximately $101 million. This latest purchase, made between December 30th and 31st at an average price of $94,004 per Bitcoin, brings the company’s total holdings to an impressive 447,470 BTC, valued at over $44 billion.
This news, revealed in a Securities and Exchange Commission (SEC) filing on Monday, follows a period of significant activity for MicroStrategy. The company also sold 319,586 of its own shares during the same period. As of January 5th, approximately $6.77 billion worth of shares remain available for sale as part of its ambitious $42 billion capital raise plan, encompassing both equity and fixed-income securities, specifically aimed at funding further Bitcoin acquisitions. This plan was recently expanded with a potential $2 billion preferred stock offering.
MicroStrategy’s average purchase price for its substantial Bitcoin treasury stands at $62,503 per Bitcoin, totaling approximately $27.97 billion, inclusive of fees and expenses. This strategic investment represents roughly 2.1% of Bitcoin’s total circulating supply of 21 million.
This latest acquisition marks the ninth consecutive week of Bitcoin purchases for MicroStrategy. The company previously announced the acquisition of 2,138 BTC for around $209 million and a further $561 million worth of Bitcoin in the weeks prior. Over these nine weeks, MicroStrategy has invested over $18 billion in Bitcoin.
Despite the company’s $83 billion market capitalization trading at a premium to its Bitcoin net asset value (NAV), and some investor reservations regarding this premium and the company’s funding strategy, MicroStrategy maintains a strong belief in Bitcoin’s long-term potential.
Analysts at Bernstein anticipate continued growth in corporate Bitcoin adoption in 2025, projecting inflows exceeding $50 billion, compared to $24 billion in the previous year. They suggest that MicroStrategy, which accounted for approximately 90% of corporate Bitcoin purchases in 2024, is likely to remain a key driver, alongside Bitcoin miners and smaller corporations looking to follow MicroStrategy’s lead. Bernstein highlights MicroStrategy’s four-year track record and increasing prominence, including its inclusion in the Nasdaq 100, as factors that could further accelerate its capital market activity.
MicroStrategy utilizes a “Bitcoin Yield” metric to track the percentage change in its Bitcoin holdings relative to its diluted shares. The company’s 2024 Bitcoin Yield reached 74.3%, demonstrating substantial growth in holdings while managing share dilution through its efficient Bitcoin acquisition strategy.
MicroStrategy shares closed up 13.2% at $339.66 on Friday, reflecting a remarkable gain of over 431% in the past year, according to TradingView. The stock is currently up 3.7% in pre-market trading on Monday.
MicroStrategy’s continued accumulation of Bitcoin underscores its strong conviction in the cryptocurrency’s future and its potential to serve as a valuable corporate treasury asset. This ongoing strategy will be closely watched by investors and the broader financial community.