MicroStrategy Buys Another $561 Million Worth of Bitcoin Before Christmas

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As an analyst with a decade of experience in the financial markets and a keen interest in cryptocurrencies, I find MicroStrategy’s Bitcoin acquisition strategy under Michael Saylor fascinating. The latest purchase of 5,262 BTC for $561 million is yet another testament to the company’s commitment to Bitcoin and its faith in the asset’s potential.

Today, Michael Saylor, the chairman of MicroStrategy, disclosed that they have acquired an additional 5,262 Bitcoins. The purchase amounted to a hefty $561 million, reinforcing their strategy of continuous Bitcoin accumulation.

After joining the NASDAQ-100, there have been whispers suggesting that the company might temporarily halt these acquisitions starting from January.

Saylor Buys Even More Bitcoin

This recent acquisition brings MicroStrategy’s Bitcoin purchases up to three in December so far. Just a week ago, the company bought $1.5 billion worth of BTC at an average price of approximately $100,386 under the guidance of CEO Michael Saylor. As a result, MicroStrategy has emerged as one of the major global holders of Bitcoin and shows no signs of slowing down in its accumulation of this cryptocurrency.

MicroStrategy recently purchased 5,262 Bitcoins for approximately $561 million, with each Bitcoin costing around $106,662. This acquisition has resulted in a quarter-to-date (QTD) yield of 47.4% and a year-to-date (YTD) yield of 73.7%. As of December 22, 2024, the company owns a total of 444,262 Bitcoins, which were acquired for roughly $27.7 billion, with each Bitcoin costing about $62,257,” Saylor asserted.

Ever since the widespread crypto market surge in November, it’s been apparent that Saylor has been planning to purchase substantial quantities of Bitcoin. So far, the value of this asset has been soaring, leading to impressive returns. More recently, he even hinted at a significant Bitcoin buy, suggesting MicroStrategy might join the NASDAQ-100 index.

It’s being speculated that MicroStrategy could temporarily halt its Bitcoin buying spree from January onwards. Given that the company has recently been added to the NASDAQ-100 and is due to release its quarterly earnings soon, Saylor might decide to observe a buying silence, which means no more Bitcoin purchases during this period.

The latest moves by the company have resulted in substantial returns, yet they could pose a potential risk not only for the company but also the overall market. There is a growing apprehension that Saylor’s actions may lead to a loss of decentralization within the Bitcoin economy, and his organization has significantly outgrown Bitcoin’s rapid expansion rate.

As a researcher, I’ve observed that Bitcoin’s (BTC) volatility seems to significantly influence MicroStrategy’s (MSTR) stock market performance. In the recent past week, Bitcoin has plummeted almost 12%, and concurrently, MicroStrategy’s stock price has dipped more than 15%. This correlation between the two is quite intriguing and worth further exploration.

As a crypto investor, I find the current trend of Bitcoin purchases looking steady for now. Even if MicroStrategy might hold off on buying in January as there are rumors suggesting, it’s possible that we could see more high-profile investments by the end of this month.

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2024-12-23 21:00