MicroStrategy Adds 2,138 Bitcoins in a Recent $209 Million Purchase

Highlights:

• MicroStrategy has boosted its Bitcoin holdings to 446,400 BTC after buying 2,138 Bitcoin for $209 million in one week.
• The company funded the purchase by selling shares and has $6.8 billion more stock available for future sales.
• MicroStrategy plans to increase shares to fund Bitcoin goals and has reached a 74.1% BTC yield this year.

MicroStrategy has announced another significant addition to its Bitcoin holdings. The company acquired 2,138 Bitcoins between December 23 and December 29. The purchase of the Bitcoin cost around $209 million at an average price of $97,873 per Bitcoin. This figure includes all fees and expenses. After this acquisition, MicroStrategy now has 446,400 Bitcoins. At current market prices, these holdings are worth around $41.8 billion.

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MicroStrategy has acquired 2,138 BTC for ~$209 million at ~$97,837 per bitcoin and has achieved BTC Yield of 47.8% QTD and 74.1% YTD. As of 12/29/2024, we hodl 446,400 $BTC acquired for ~$27.9 billion at ~$62,428 per bitcoin. $MSTR https://t.co/58aXM7g6u2

— Michael Saylor⚡️ (@saylor) December 30, 2024

The latest acquisition also marks MicroStrategy’s eighth consecutive week of Bitcoin purchases. Last week, the company announced it had bought 5,262 Bitcoin for $561 million. During the years, MicroStrategy has emerged as the largest corporate holder of Bitcoin.

Stock Sales Fund Latest Bitcoin Acquisition

MicroStrategy relied on stock sales to fund the latest purchase. Between December 23 and December 29, the company sold 592,987 Class A shares. These sales generated $209 million in net proceeds, according to the company’s SEC filing. The stock sales are part of a larger equity offering plan.

MicroStrategy previously announced plans to raise up to $21 billion through stock sales. As of December 29, the company has approximately $6.8 billion worth of shares available for future sales. This ongoing plan provides the company with a steady flow of capital for its Bitcoin investments.

The decision to fund Bitcoin acquisitions through stock sales reflects MicroStrategy’s commitment to its long-term strategy. The company has maintained its financial resources to pursue substantial Bitcoin purchases by using its equity.

Increasing Financial Flexibility

MicroStrategy is also looking into ways to make itself financially more flexible for future investments. It has proposed major changes to its share structure. They include increasing the number of authorized Class A shares to 10.33 billion from 330 million. It also intends to raise preferred shares from 5.0 million to 1.005 billion.

Microstrategy seems to be preparing to go much, much higher, given their upcoming shareholder vote to increase shares from 330 million to 10 billion:pic.twitter.com/JlBLyutsUg

— Mister Lee (@LeeWinbush) December 24, 2024

The changes are intended to provide the company with more options to finance its aggressive Bitcoin strategy. Michael Saylor outlined plans to reassess the company’s strategy earlier this month. After hitting a $42 billion investment target in Bitcoin, the reassessment will take place. 

In addition, the company’s visibility has been boosted by its inclusion in the Nasdaq-100 Index. The move has boosted investor confidence in MicroStrategy’s strategy.

Bitcoin Prices Influence MicroStrategy Stock

The performance of MicroStrategy’s stock largely depends on Bitcoin’s prices. MicroStrategy has seen a notable decline in its stock performance today, dropping by 7.65% to $304.75. This drop is largely attributed to the recent decline in Bitcoin’s price.

Overall, MicroStrategy’s stock performance has been a mix of highs and lows, reflecting both the potential rewards and risks associated with its Bitcoin-centric strategy. From October to December 2024, the company achieved a Bitcoin yield of 47.8%. For the entire year, its yield reached 74.1%. Many institutions have adopted Bitcoin as part of their strategic reserves following the footsteps of MicroStrategy. More companies are expected to venture into cryptocurrencies as regulations become more clear.

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