Étienne Girard
Business intelligence giant and prominent Bitcoin holder MicroStrategy has added 1,070 BTC to its treasury for approximately $101 million. According to an SEC 8-K filing on Monday, the purchase was made between Dec. 30 and Dec. 31 at an average price of $94,004 per Bitcoin.
This latest acquisition coincided with the sale of 319,586 MicroStrategy shares for the same amount, aligning with the company’s ambitious 21/21 capital-raising strategy. As part of this plan, MicroStrategy aims to raise $42 billion, split between equity offerings and fixed-income securities.
With its latest purchase, MicroStrategy now holds 447,470 Bitcoin, valued at over $44 billion at current market prices. These holdings were acquired at an average price of $62,503 per Bitcoin, bringing the company’s total investment to $27.97 billion, including related fees and expenses.
Michael Saylor, MicroStrategy’s co-founder and executive chairman, celebrated Bitcoin’s recent milestone of $100,000 during a New Year’s Eve gathering in Miami, noting that the company now owns about 2.1% of Bitcoin’s total 21 million supply.
Accelerated Purchases Mark Nine Consecutive Weeks of Activity
The recent acquisition follows a series of aggressive purchases by MicroStrategy. Over the past nine weeks, the company has acquired more than $18 billion worth of Bitcoin. Notable purchases include 2,138 Bitcoin for $209 million the previous week and $561 million in Bitcoin acquisitions the week before.
Despite these efforts, some investors remain cautious about the company’s premium-to-net-asset-value (NAV) valuation and its heavy reliance on equity and debt financing to fund Bitcoin purchases.
Analysts at Bernstein Research predict corporate adoption of Bitcoin will grow significantly in 2025, with inflows projected to exceed $50 billion, up from $24 billion in 2024. MicroStrategy, which accounted for 90% of corporate Bitcoin purchases last year, is expected to remain the leading player, followed by Bitcoin miners and mid-sized companies emulating Saylor’s strategy.
“MicroStrategy’s four-year track record and increasing prominence, including its inclusion in the Nasdaq 100, position it for even greater capital market activity,” said Gautam Chhugani, digital assets lead at Bernstein, in a note to clients.
Measuring Success: Bitcoin Yield and Stock Performance
MicroStrategy evaluates its performance using a proprietary metric called Bitcoin Yield, which measures changes in Bitcoin holdings relative to diluted shares. The company reported a Bitcoin Yield of 74.3% for 2024, reflecting substantial growth in Bitcoin reserves while managing share dilution.
Stock Performance Reflects Market Confidence
MicroStrategy shares have surged over 431% in the past year, closing at $339.66 on Friday and gaining an additional 3.7% in pre-market trading on Monday, according to TradingView. The company’s market cap of $83 billion continues to trade at a premium, reflecting investor confidence in its Bitcoin-focused strategy.
