MicroStrategy Bets Big Again on Bitcoin
MicroStrategy has once again expanded its massive Bitcoin holdings, purchasing 21,550 BTC for $2.1 billion in its fifth consecutive weekly buy.
What’s the Scoop?
- The company now holds 423,650 BTC worth $42 billion, with an average purchase price of $60,324 per Bitcoin. Since November 11, MicroStrategy has aggressively added 171,430 BTC to its balance sheet, solidifying its position as the largest corporate Bitcoin holder. The firm’s average purchase price for this latest batch of Bitcoin was $98,783 per BTC.
- MicroStrategy’s stock (MSTR) has surged over 2,500% since it adopted Bitcoin in 2020, acting as a proxy for investors seeking Bitcoin exposure.
- The firm continues to use convertible debt to fund its Bitcoin purchases, appealing to hedge funds and institutional investors.
Bankless Take
MicroStrategy’s relentless accumulation of Bitcoin highlights both its confidence in the cryptocurrency’s long-term potential and its reliance on BTC as a corporate growth strategy. With Bitcoin prices nearing $100,000, the firm’s early investments are paying off handsomely, but its fortunes are now tightly intertwined with the volatile crypto market. While this approach has boosted MicroStrategy's market profile, it remains a high-stakes gamble that could backfire if Bitcoin’s momentum stalls or reverses.
MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per #bitcoin and has achieved BTC Yield of 43.2% QTD and 68.7% YTD. As of 12/8/2024, we hodl 423,650 $BTC acquired for ~$25.6 billion at ~$60,324 per bitcoin. $MSTR https://t.co/8r7bFqMFof
— Michael Saylor⚡️ (@saylor) December 9, 2024