MicroStrategy has invested significantly, acquiring 15,350 Bitcoin from December 9 to December 15, totalling around $1.5 billion. The average price paid per Bitcoin stands at $100,386. The recent acquisition has brought the company’s total Bitcoin reserves to 439,000 BTC, now valued at more than $45 billion. The acquisition was funded by the sale of 3,884,712 Class A shares. As of now, MicroStrategy has invested a staggering $27.1 billion in Bitcoin, acquiring the cryptocurrency at an average price of $61,725 per coin.
In a significant move, the latest acquisition comes on the heels of another substantial purchase made just a week prior. MicroStrategy acquired 21,550 BTC for $2.1 billion, translating to an average price of $98,783 per Bitcoin. In a remarkable development over the past six weeks, the company has significantly increased its Bitcoin holdings by $17.5 billion, representing 39% of its total assets. MicroStrategy has achieved a market capitalisation of $92 billion, as its stock is currently trading at a significant premium compared to its Bitcoin net asset value.
Michael Saylor, the Executive Chairman of MicroStrategy, has repeatedly demonstrated unwavering confidence in Bitcoin. “I am confident that I will purchase Bitcoin for $1 million per coin—likely investing $1 billion daily in Bitcoin at that valuation,” he remarked. The company employs a performance metric, Bitcoin Yield, to assess Bitcoin growth about diluted shares. As of December 15, the year-to-date yield for Bitcoin reached an impressive 72.4%.
On December 14, Nasdaq revealed that MicroStrategy is set to be included in the Nasdaq 100 Index, effective December 23. Analysts anticipate a notable increase in institutional buying as exchange-traded funds (ETFs), including QQQ, prepare to incorporate the stock. According to Bloomberg analyst James Seyffart, the projected value of shares to be acquired is estimated to exceed $2.1 billion. The company’s stock price has experienced a remarkable increase of over 490% this year, finishing at $408.67 last Friday and climbing an additional 3.5% in pre-market trading on Monday.
MicroStrategy’s entry into the Nasdaq 100 marks a significant achievement, enhancing liquidity and drawing additional capital. Bernstein analysts predict that the company will likely keep issuing equity at the current high prices to finance further Bitcoin acquisitions. Analysts noted that MicroStrategy’s leverage is currently at a manageable 18% of its Bitcoin net asset value, suggesting potential for additional debt issuance.
Anticipated modifications to accounting regulations concerning digital assets in 2025 may enhance MicroStrategy’s outlook. New regulations will enable companies to disclose profits as Bitcoin prices rise, enhancing financial transparency. Analysts from Bernstein contend that the recent rule change may improve MicroStrategy’s prospects for inclusion in the S&P 500 Index, even in light of the software company’s constrained profitability.
MicroStrategy has acquired approximately 2.1% of the total supply of Bitcoin, which is capped at 21 million coins. Despite lingering scepticism among confident investors regarding the sustainability of the strategy, mainly due to concerns over potential price volatility, analysts at Bernstein characterise it as a high-conviction, long-term approach. Bitcoin’s price has surged to $107,000, further propelling MicroStrategy’s growth trajectory. The company’s strategy for acquiring Bitcoin remains under careful observation, serving as a key indicator of institutional adoption trends.