MicroStrategy is actively expanding its Bitcoin (BTC) portfolio, having acquired 2,138 BTC for $209 million in its most recent transaction, which has brought its total BTC holdings to 446,400.
MicroStrategy’s Continuous Bitcoin Acquisitions in 2024
In a recent statement, the US-based firm announced it had further increased its Bitcoin reserves. The acquisition of 2,138 BTC took place between December 23 and December 29, with an average purchase price of $97,837 per BTC.
MicroStrategy financed this acquisition by selling 592,987 shares, raising $209 million in cash. This marks the eighth week in a row that the company has added to its Bitcoin holdings.
CEO Michael Saylor hinted at the purchase on social media by sharing a chart called the “Saylor Tracker,” which shows the company’s Bitcoin buying history. He indicated some “worrying” trends on the tracker, suggesting a potential Bitcoin purchase was imminent.
Furthermore, the company disclosed a BTC yield—an indicator of the investment performance of its Bitcoin—of 74.1% year-to-date (YTD) as of December 30. For the quarter from October 1 to December 29, the BTC yield was 47.8%, indicating substantial growth in the final months of the year.
Despite this proactive buying, MicroStrategy’s stock didn’t see a corresponding increase, decreasing by 5.19% on the day of the announcement. However, the stock has experienced a remarkable 395% increase over the year, surpassing gains for both Bitcoin and the S&P 500.
Saylor, a known Bitcoin advocate, has stated his commitment to buying Bitcoin “at the top” indefinitely. He boldly claimed that he would continue these purchases even if Bitcoin reached $1 million. He has also encouraged people to switch from gold to Bitcoin, promoting it as a far superior asset. Saylor’s previous remarks include:
Get rid of your gold. Sell all the US gold, [and] buy Bitcoin, then you’ll get a great deal because you could acquire 5 million Bitcoin for the cost of the gold. This action would devalue gold entirely, while our assets could skyrocket in value.
2024: A Pivotal Year for Bitcoin Adoption
The year 2024 has been crucial for Bitcoin’s institutional adoption. In January, the US Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs), facilitating easier access for institutional investors to Bitcoin.
Additionally, an October survey revealed that 72% of institutional investors expressed interest in investing in digital assets, increasing Bitcoin’s overall attractiveness. As of the latest updates, BTC is priced at $91,779, reflecting a decrease of 3.2% in the last 24 hours.
