MicroStrategy, a leading business intelligence company, has made headlines once again with its latest Bitcoin acquisition. In a strategic move, the company has purchased 1,070 BTC for approximately $101 million, with an average price of around $94,004 per Bitcoin. This acquisition highlights the company’s commitment to cryptocurrency, achieving a Bitcoin yield of 48.0% in Q4 2024 and an impressive 74.3% for the entire fiscal year of 2024. As of January 5, 2025, MicroStrategy holds a staggering 447,470 BTC, acquired at a total cost of approximately $27.97 billion, averaging $62,503 per Bitcoin.
Company’s Bitcoin Buying Strategy
Under the visionary leadership of co-founder Michael Saylor, MicroStrategy has consistently expanded its Bitcoin reserves through strategic acquisitions. Over the past nine weeks, the company has signaled its intention to increase its Bitcoin holdings, aligning with its ambitious 21/21 plan. This plan aims to purchase $42 billion worth of Bitcoin, financed equally through $21 billion in equity and $21 billion in fixed-income securities.
Since the inception of this bold strategy, MicroStrategy has successfully acquired over 194,000 BTC, valued at approximately $18 billion. This remarkable achievement signifies that the company has already reached 42% of its acquisition goal within just two months. The consistent accumulation of Bitcoin underscores MicroStrategy’s unwavering commitment to the cryptocurrency market, positioning it as a formidable player in the industry.
MicroStrategy’s New Stock Offering
To fuel its aggressive Bitcoin acquisition strategy, MicroStrategy has relied on various financial instruments, including loans and convertible notes. However, the company is now exploring a new avenue by planning to issue perpetual preferred stock in the upcoming quarter. This strategic decision aims to secure additional funds, although its implementation remains contingent upon prevailing market conditions and the company’s final judgment.
The introduction of perpetual preferred stock signifies an important development for MicroStrategy. This type of stock is considered “senior” to regular shares, granting holders priority in the event of bankruptcy or asset liquidation. This strategic move reflects MicroStrategy’s commitment to diversifying its funding sources and bolstering its financial position, further supporting its ambitious Bitcoin acquisition goals.
Impact on MicroStrategy’s Stock (MSTR)
MicroStrategy’s inclusion in the prestigious Nasdaq 100 index has significantly strengthened its position in both the cryptocurrency and traditional financial markets. This notable achievement has the potential to attract substantial investments from passive funds, further enhancing the company’s market presence.
The company’s strategic approach to Bitcoin acquisition has had a profound impact on its stock performance. MicroStrategy’s shares have experienced a notable surge of 13%, with current trading values reaching $339. This upward trajectory reflects the market’s confidence in MicroStrategy’s long-term vision and its ability to leverage cryptocurrency investments to drive shareholder value.
MicroStrategy’s unwavering commitment to acquiring Bitcoin has solidified its standing as a key player in the crypto market. Michael Saylor’s influential posts have become closely watched indicators of future purchases, further fueling market anticipation and interest in the company’s activities.
How much Bitcoin does MicroStrategy own?
MicroStrategy holds an impressive 447,470 BTC, acquired at an approximate total cost of $27.97 billion, with an average acquisition price of $62,503 per Bitcoin.
Is MicroStrategy in the S&P 500?
While MicroStrategy has secured a spot on the Nasdaq-100 list, analysts suggest that its inclusion in the S&P 500 index is unlikely in the near future.
