MicroStrategy, a pioneer in integrating cryptocurrency into corporate strategy, has recently made waves by acquiring 1,070 Bitcoin (BTC) at an approximate cost of $101 million, with each Bitcoin valued at around $94,004. This strategic acquisition has significantly bolstered the company’s Bitcoin yield, achieving a remarkable 48.0% in the fourth quarter of 2024 and a substantial 74.3% throughout the fiscal year of 2024. As of January 5, 2025, MicroStrategy proudly holds a staggering 447,470 BTC, which were acquired at a total investment of approximately $27.97 billion, translating to an average price of $62,503 per Bitcoin.
MicroStrategy’s Bitcoin Buying Strategy
Under the visionary leadership of co-founder Michael Saylor, MicroStrategy has persistently expanded its Bitcoin reserves, highlighted by its recent significant acquisition. For nine consecutive weeks, the company has signaled its intent to increase its Bitcoin holdings, aligning with its ambitious “21/21” plan. This strategy aims to accumulate $42 billion worth of Bitcoin by leveraging $21 billion through equity and an additional $21 billion through fixed-income securities. Since the inception of this bold plan, MicroStrategy has already secured over 194,000 BTC, valued at approximately $18 billion, thereby achieving 42% of its target in a span of just two months.
MicroStrategy’s New Stock Offering
To fuel its aggressive Bitcoin acquisition strategy, MicroStrategy has historically utilized loans and convertible notes. In a novel approach, the company is now planning to issue perpetual preferred stock within this quarter. However, the execution of this offering is contingent upon prevailing market conditions and the company’s ultimate decision. This preferred stock will hold a “senior” status in comparison to regular shares, granting stockholders priority in the event of the company’s bankruptcy or asset liquidation.
Impact on MicroStrategy’s Stock (MSTR)
MicroStrategy’s inclusion in the prestigious Nasdaq-100 has further solidified its standing within both the cryptocurrency and traditional financial markets. This notable achievement has the potential to attract billions of dollars from passive fund investments. Simultaneously, the company’s strategic Bitcoin acquisition approach has significantly benefited its stock, with shares experiencing a remarkable 13% surge, currently trading at $339. MicroStrategy’s unwavering commitment to acquiring Bitcoin has cemented its position as a key player in the crypto market, with Michael Saylor’s announcements serving as a closely monitored indicator of future purchases.
Frequently Asked Questions
How much Bitcoin does MicroStrategy own?
MicroStrategy holds an impressive 447,470 BTC, acquired at a total cost of approximately $27.97 billion, with each Bitcoin averaging a price of $62,503.
Is MicroStrategy part of the S&P 500?
While MicroStrategy has secured a position on the Nasdaq-100 list, analysts suggest that its inclusion in the S&P 500 index might not be imminent in the near future.
