MicroStrategy Acquires 1,070 Bitcoin for $101 Million, BTC Yield Hits 74%

Highlights:

• MicroStrategy purchased 1,070 Bitcoin at an average of $94,004 per BTC.
• The company now owns 447,470 BTC, representing roughly 2.1% of Bitcoin’s total supply.
• Despite critics, MicroStrategy’s strategy still enjoys strong support from the crypto market.

Business intelligence firm MicroStrategy revealed in a U.S. SEC filing on Jan 6 that it acquired 1,070 BTC for $101 million. The Bitcoin acquisition occurred at an average price of $94,004 each between Dec. 30 and Dec. 31.

The Tysons, Virginia-based company funded its latest purchase by selling 319,586 shares during the same period. As of January 5, the company stated that around $6.77 billion in shares were still available for sale. This is part of its $21 billion equity offering and $21 billion in fixed-income securities capital raise. The company aims to reach a total of $42 billion to fund further Bitcoin acquisitions.

MicroStrategy has acquired 1,070 BTC for ~$101 million at ~$94,004 per bitcoin and has achieved BTC Yield of 48.0% in Q4 2024 and 74.3% in FY 2024. As of 01/05/2025, we hodl 447,470 $BTC acquired for ~$27.97 billion at ~$62,503 per bitcoin. $MSTR https://t.co/CkLrLSkB5M

— Michael Saylor⚡️ (@saylor) January 6, 2025

On January 3, MicroStrategy announced its plan to raise an extra $2 billion through a perpetual preferred stock offering.

MicroStrategy Expands Bitcoin Holdings to 447,470 BTC

Following its latest Bitcoin purchase, MicroStrategy now owns 447,470 BTC, totaling $27.97 billion at an average price of $62,503 per Bitcoin. Since November 11, after pro-Bitcoin Donald Trump’s U.S. presidential election win, the company has made Bitcoin acquisitions every Monday.

Today’s announcement marks its ninth consecutive weekly purchase. Last week, MicroStrategy purchased 2,138 BTC for $209 million. Its largest-ever single purchase occurred on November 25, when it acquired 55,500 BTC for $5.4 billion. The company now holds around 2.1% of Bitcoin’s total 21 million supply.

MicroStrategy’s Bitcoin purchase on December 23 marked its only loss. The company acquired 5,262 BTC at $106,662 per coin, while Bitcoin is currently trading at $99,500 per coin. Despite this, MicroStrategy is still up by 59.35% on its total Bitcoin holdings, with earnings exceeding $16 billion.

In the announcement, Michael Saylor, co-founder and executive chairman of MicroStrategy, also disclosed that MicroStrategy achieved a 48% BTC yield in the fourth quarter of the previous year. He also shared that the total BTC yield for the entire year of 2024 was 74.3%.

Additionally, the MSTR stock price has increased after the latest Bitcoin acquisition. Nasdaq data shows a more than 3% increase, with the stock now trading around $350.

Michael Saylor’s Bitcoin Strategy

Michael Saylor has made BTC a key part of the company’s strategy. He is also recognized as a prominent advocate for Bitcoin. Saylor sees Bitcoin as a means to build wealth and as part of a broader humanitarian movement.

Critics have raised concerns about Saylor and MicroStrategy’s strategy. They question its high valuation and reliance on equity and debt for Bitcoin. Despite this, the crypto market largely continues to support the company

In a recent interview with Fox, Saylor stated:

“If you accumulate a lot of wealth in Bitcoin and you just burn the keys when you leave, you are making a pro-rata contribution to everyone that owns Bitcoin in the world.”

Bernstein’s Gautam Chhugani mentioned in a note on Monday that MicroStrategy’s four-year track record and Nasdaq 100 inclusion are boosting its profile. He added that the company’s capital markets flywheel is expected to further accelerate.