Key Takeaways
- U.S.-based business intelligence and cloud solutions firm MicroStrategy has purchased an additional 21,550 BTC for $2.1 billion. The acquisition was made between December 2 and December 8 using proceeds from MSTR share sales, at an average price of $98,783 per coin.
- This marks the fifth consecutive week that the company has acquired Bitcoin. Its total holdings have grown to 423,650 BTC, valued at nearly $41.3 billion.
- MicroStrategy controls 2% of Bitcoin’s circulating supply of 19.79 million and is the largest corporate holder of the flagship cryptocurrency. The company’s BTC accumulation strategy has inspired other firms, such as Metaplanet, Marathon Digital, and Riot Platforms, to hold the digital asset as an inflationary hedge.
- Despite the price of BTC dropping below $98,000, there won’t be a slowdown in MicroStrategy’s purchase pattern. MSTR has showcased a tremendous 520% growth since January 1, going from $68 per share to nearly $400.
Bitcoin billionaire Michael Saylor’s business intelligence firm MicroStrategy has doubled down on its corporate strategy of accumulating Bitcoin as a treasury asset by further expanding its holdings. The company announced in an official statement late on Monday that it bought 21,550 BTC, worth approximately $2.1 billion, for its treasury, bringing its total holdings to 423,650 BTC – valued at $41.281 billion.
MicroStrategy Adds 21,550 BTC To Treasury; Total Holdings Now Worth Over $40 Billion
This marks the fifth consecutive week in which MicroStrategy has bought Bitcoin, solidifying its position as the world’s largest corporate holder of the cryptocurrency. The company now controls over 2% of the apex crypto asset’s circulating supply. During this period, the price of BTC rose by 40%, while MicroStrategy’s MSTR stock climbed by approximately 20%.
The latest purchase was made between December 2 and December 8 at an average price of $98,783 per BTC, including fees and other expenses. This also comes during a historic period for the flagship cryptocurrency after it crossed the coveted $100,000 mark for the first time in history following the markets’ positive sentiment towards Donald Trump as they hope the President-elect will introduce friendlier regulations for the industry.
As per its filings with the U.S. Securities and Exchange Commission (SEC), the acquisition was funded through the proceeds of issuing and selling $2.13 billion worth of MSTR shares. The share sale is part of the company’s plans to add $42 billion in Bitcoin over the next three years by issuing shares and convertible note offerings.
MicroStrategy’s executive chairman and former CEO Michael Saylor took to X to reveal the company’s holdings, which stand at 423,650 BTC, cost $25.6 billion in total, and were acquired at an average price of $60,324 per token.
Michael Saylor “Forever Bullish” On BTC, Urges U.S. Government To Exchange Gold Reserves For Bitcoin
Despite the mega-purchase, MSTR stock was down roughly 4% on Monday after Bitcoin’s price dipped below $98,000. While many investors have second thoughts about investing in the asset, with some opining that the bull run may be over, Saylor seems unfazed. During an interview earlier this year, he said that MicroStrategy would be buying Bitcoin at the top “forever”, even if it costs $1 million per coin or $1 billion per coin.
Recently, the billionaire urged the U.S. government to “dump” its gold reserves and replace them with Bitcoin. Saylor also noted that if America demonetizes its entire gold holdings, the value of gold held by the “enemies” will go to zero and the nation’s assets would be worth $100 trillion.
MSTR’s value has surged by 520% since the beginning of the year, going from $69 on January 1 to $388 at the time of writing. Since then, the stock has managed to outperform Bitcoin itself, which it is backed by, and the entire S&P 500 Index.
MicroStrategy’s Bitcoin Treasury Strategy Inspires Companies And Governments
MicroStrategy’s highly profitable Bitcoin treasury strategy has inspired several companies worldwide to turn towards the digital asset as a hedge against inflation. Japanese investment firm Metaplanet announced earlier this year that it will be acquiring BTC as a corporate asset with funding from share sales. According to its filings, the company holds over 1000 BTC, worth $97.2 million.
Leading Bitcoin miner Riot Platforms, a publicly-listed firm in the U.S., unveiled a $500 million convertible bond offering on Monday to buy more BTC. Meanwhile, mining firms Marathon Digital (MARA) and Semler Scientific (SMLR) revealed the intention to acquire more Bitcoin for their respective treasuries.
U.S. President-elect Donald Trump has touted the idea of establishing a national Bitcoin stockpile to protect the value of the dollar. If approved by the Senate, the Treasury Department looks to buy 1 million BTC over the next 4 years with the hope of bringing down the national debt, which hit a whopping $36 trillion.
At the time of writing, Bitcoin (BTC) is trading at $97,333 – down 1.27% over the last 24 hours. MSTR is currently trading at $365.34 – down 29%.
Also Read: Bitcoin (BTC) Faces Fall with Liquidation Surge: Is BTC Bull Run Nearing Its End?
