MicroStrategy's Bitcoin Treasury Grows: Now Holds 450,000 BTC
MicroStrategy, the business intelligence firm known for its aggressive Bitcoin strategy, has added another 2,530 BTC to its already substantial holdings. The purchase, valued at approximately $243 million, brings the company's total Bitcoin treasury to a staggering 450,000 BTC, worth over $40 billion at current prices. This latest acquisition underscores MicroStrategy's unwavering commitment to Bitcoin as a core component of its corporate strategy.
Fueling the Acquisition Engine
The purchase, disclosed in a recent SEC filing, was made between January 6 and January 12 at an average price of $95,972 per Bitcoin. Interestingly, this acquisition coincides with the sale of 710,425 MicroStrategy shares, also for the same amount of $243 million. The company still has approximately $6.53 billion worth of shares available for sale as part of a larger capital-raising plan. This plan, which includes a $21 billion equity offering and a $21 billion fixed-income securities raise, is designed to generate a total of $42 billion, with a significant portion earmarked for further Bitcoin acquisitions.
Attracting Institutional Interest
MicroStrategy's Bitcoin strategy has drawn significant attention, with some analysts highlighting the potential of its recent move to offer up to $2 billion in preferred stock. Benchmark equity analyst Mark Palmer suggests this approach could attract institutional investors like insurance companies, pension funds, and banks, potentially unlocking a new wave of institutional capital for the company.
The Scale of MicroStrategy's Holdings
The company's co-founder and executive chairman, Michael Saylor, confirmed that the 450,000 BTC holdings were acquired at an average price of $62,691 per Bitcoin, representing a total investment of around $28.2 billion, including fees and expenses. To put this in perspective, MicroStrategy now holds roughly 2.1% of Bitcoin's total 21 million supply.
A Decade of Consistent Buying
This latest purchase marks the tenth consecutive week of Bitcoin acquisitions by MicroStrategy. Last week alone, the company acquired 1,070 BTC for approximately $101 million, following a $209 million purchase the week prior. BRN analyst Valentin Fournier noted that while last week's purchase had a limited market impact, it highlights the firm's consistent demand for Bitcoin.
Market Reaction and Valuation Questions
Over the past ten weeks, MicroStrategy has acquired more than $18 billion worth of Bitcoin. However, its $81 billion market capitalization trades at a significant premium to its Bitcoin net asset value, leading some investors to question the firm's valuation and its aggressive acquisition strategy.
What's Next for MicroStrategy and Bitcoin?
MicroStrategy's relentless Bitcoin accumulation continues to make headlines. While the company's stock dipped slightly in pre-market trading following the announcement, its long-term commitment to Bitcoin remains clear. As the largest corporate holder of Bitcoin, MicroStrategy's actions are closely watched by the entire crypto industry and are a significant factor in the ongoing narrative of institutional Bitcoin adoption.