MicroStrategy Adds 1,070 BTC, Boosting Stash to 447,470 Bitcoin

MicroStrategy Adds 1,070 BTC, Boosting Stash to 447,470 Bitcoin

MicroStrategy Bolsters Bitcoin Holdings with $101 Million Acquisition

MicroStrategy, the business intelligence firm renowned for its aggressive Bitcoin (BTC) acquisition strategy, has announced the purchase of an additional 1,070 BTC worth $101 million. This move, completed between December 30 and 31, further cements the company’s status as a corporate leader in Bitcoin adoption.

With this latest acquisition, MicroStrategy now owns 447,470 BTC, valued at over $44 billion. The company has invested nearly $28 billion into Bitcoin, financing these purchases through the sale of its own shares. In a filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy disclosed the sale of 319,586 shares between December 30 and 31, raising $42 billion through equity and fixed-income offerings to expand its Bitcoin holdings further.

This acquisition is part of a larger buying spree. Last week, the company purchased 2,138 BTC for $209 million, following a $561 million acquisition the week prior. Over the past nine weeks, MicroStrategy has spent more than $18 billion on Bitcoin, underscoring its unwavering commitment to the cryptocurrency.

As of January 5, the company’s total Bitcoin investment amounts to $27.97 billion, with an average purchase price of $62,503 per coin. With its substantial holdings, MicroStrategy owns approximately 2.1% of Bitcoin’s total supply of 21 million coins, solidifying its influence in the volatile crypto market. To track the efficiency of its investments, the company employs a unique metric called “Bitcoin Yield,” which reflects the growth of its Bitcoin holdings relative to its diluted shares. In 2024, MicroStrategy reported a Bitcoin Yield of 74.3%, highlighting its ability to expand its holdings while minimizing shareholder dilution.

MicroStrategy’s stock has seen remarkable growth, surging 431% over the past year, including a 13.2% increase last Friday. This surge has pushed its market capitalization above the value of its Bitcoin holdings, sparking both optimism and concern among investors. Despite these concerns, analysts at Bernstein predict that corporate Bitcoin adoption will accelerate, with over $50 billion expected to flow into the market by 2025.

MicroStrategy, which accounted for 90% of all corporate Bitcoin purchases last year, is likely to remain a dominant force in this space. Its strategy, led by executive chairman Michael Saylor, is expected to inspire Bitcoin miners and mid-sized companies to follow suit. Analysts view MicroStrategy’s approach as a blueprint for corporate Bitcoin adoption, reinforced by its inclusion in the Nasdaq 100 index.

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