MicroStrategy Acquires $1.5 Billion in Bitcoin, Surpassing 439,000 BTC Holdings

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As a seasoned crypto investor with over a decade of experience in this wild west of digital assets, I find myself constantly amazed by MicroStrategy’s audacious and visionary approach to Bitcoin. Michael Saylor, like a modern-day gold rush prospector, has staked his claim on the digital gold, Bitcoin.

MicroStrategy has increased its Bitcoin reserves further by purchasing an additional 15,350 Bitcoins, totaling approximately $1.5 billion. This transaction took place between December 9 and December 15, 2024, with each Bitcoin costing around $100,386 on average, including fees.

As an analyst, I’m noting a significant shift in MicroStrategy’s strategy: for the first time, we’ve made a Bitcoin purchase at an average price surpassing $100,000. This move reflects our steadfast dedication to Bitcoin as our primary reserve asset, underscoring our long-term belief in its potential.

Michael Saylor’s Vision for Bitcoin

Through a recent purchase, MicroStrategy now holds a total of 439,000 Bitcoins. This substantial collection was amassed at a total expense of approximately $27.1 billion, with each Bitcoin acquired at an average price of roughly $61,725. The company financed the latest transaction using funds raised through its equity sales agreement, as detailed in its SEC filing dated December 16, 2024.

Additionally, the report brought attention to MicroStrategy’s exceptional Bitcoin Return on Investment (ROI), a crucial benchmark for assessing the company’s Bitcoin-related growth compared to the expansion of its outstanding shares. From October 1st to December 15th, this ROI stood at an impressive 46.4% quarterly figure. Since the beginning of the year, this metric has skyrocketed to a staggering 72.4%, demonstrating MicroStrategy’s strategic prowess in utilizing equity sales to amass Bitcoin.

Michael Saylor, Executive Chairman at MicroStrategy, remains vocal in championing the use of Bitcoin. He consistently underscores the long-term worth of Bitcoin as a “digital investment asset.” Under his guidance, MicroStrategy has significantly altered its financial approach, employing Bitcoin as a safeguard against the devaluation and inflation of traditional currencies.

MicroStrategy’s large-scale Bitcoin purchases are made possible through its equity sales agreements. In the same timeframe as these Bitcoin acquisitions, the company issued and sold 3,884,712 shares of its Class A common stock, raising approximately $1.54 billion. This approach allows MicroStrategy to amass Bitcoin without needing traditional loan financing.

As a researcher, I’m observing that our company’s proactive stance towards Bitcoin is truly trailblazing. Our BTC-centric approach is being hailed by analysts as daring yet visionary, hinting at a time when Bitcoin could become an integral part of corporate holdings, signifying its growing significance in the business world.

However, MicroStrategy also has its critics, such as economist Peter Schiff.

Exactly what I anticipated. Visualize the further decline in the Bitcoin price once purchases cease. Now, envision an even steeper drop as creditors compel sales,” Schiff posted on Twitter.

Although some skeptics debate the long-term viability of this approach, MicroStrategy’s growing Bitcoin earnings indicate its effectiveness. Given Bitcoin’s inherent price fluctuations, MicroStrategy’s tactics underscore their belief in Bitcoin as a potential long-term asset.

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2024-12-16 16:33