MicroStrategy Bolsters Bitcoin Holdings Ahead of Nasdaq-100 Debut
MicroStrategy has announced the acquisition of 5,262 Bitcoin valued at $561 million, marking another bold step in its Bitcoin investment strategy. The purchase, executed between December 16 and 22 at an average price of $106,662 per Bitcoin, represents the company’s seventh consecutive week of buying the cryptocurrency. This milestone coincides with the firm’s imminent inclusion in the prestigious Nasdaq-100 index.
Funded Through Stock Sales
The Tysons, Virginia-based company funded the acquisition by selling shares of its own stock. According to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, MicroStrategy issued 1,317,841 shares last week, raising approximately $561 million in net proceeds. With about $7 billion in shares remaining under its current sales agreement, the company has substantial capacity for future funding.
Record-Breaking Bitcoin Holdings
MicroStrategy’s latest purchase brings its total Bitcoin holdings to 444,262 coins, acquired at an aggregate cost of $27.7 billion, averaging $62,257 per Bitcoin. This strategic accumulation has contributed to a remarkable 47.4% yield in the current quarter and a 73.7% yield year-to-date.
The firm’s heavy investment in Bitcoin has paid off handsomely in 2023, with its stock price surging 476% year-to-date. This stellar performance has positioned MicroStrategy among the top-performing stocks on Nasdaq this year.
Nasdaq-100 Inclusion
MicroStrategy’s success has earned it a spot in the Nasdaq-100 index, a prestigious group of the largest non-financial companies listed on Nasdaq. The annual reconstitution, announced on December 13, will take effect today before markets open. Alongside MicroStrategy, Palantir Technologies and Axon Enterprise are also joining the index this year.
Market Reaction
The market has responded positively to the company’s achievements. MicroStrategy’s stock closed at $364 on Friday, reflecting an 11.5% increase, according to Yahoo Finance data.
MicroStrategy’s bold Bitcoin strategy and rising market prominence underscore its role as a pioneer at the intersection of cryptocurrency and traditional finance. As the company continues to expand its holdings and influence, it remains a key player to watch in both sectors.