MicroStrategy Acquires 15,350 BTC for $1.5 Billion, Totaling 439,000 BTC
MicroStrategy has increased its Bitcoin holdings by purchasing 15,350 BTC for approximately $1.5 billion from December 9 to December 15, 2024. The average purchase price was $100,386 per Bitcoin, marking the first acquisition above $100,000 per coin. This brings MicroStrategy’s total holdings to 439,000 BTC, valued at about $27.1 billion.
The company's strategy emphasizes using Bitcoin as its primary treasury asset, reflecting confidence in the cryptocurrency's long-term potential. Executive Chairman Michael Saylor advocates for Bitcoin as a hedge against inflation and fiat currency devaluation, positioning the company to prioritize Bitcoin over traditional investments.
To finance this purchase, MicroStrategy raised $1.54 billion through the sale of 3.88 million shares of its Class A common stock. This method avoids loans or traditional debt, allowing the company to enhance its BTC reserves via equity sales. It reported a quarterly Bitcoin Yield of 46.4% from October 1 to December 15, with a year-to-date yield of 72.4%, demonstrating effective use of its equity strategy.
Saylor describes Bitcoin as a “digital capital asset” with significant long-term value. His vision has established MicroStrategy as a leader in corporate Bitcoin investment, influencing other companies to consider similar approaches. Saylor views Bitcoin as protection against economic instability, driving the company’s aggressive acquisition strategy.
Critics like economist Peter Schiff argue that MicroStrategy's reliance on Bitcoin poses substantial risks. He noted on social media that Bitcoin’s value could decline sharply if MicroStrategy halts purchases or is compelled to sell, especially during a financial crisis. Concerns stem from Bitcoin's volatility and the sustainability of MicroStrategy’s equity-based funding model.
Despite criticisms, MicroStrategy’s acquisition strategy has shown success, evidenced by its growing Bitcoin Yield. Analysts view its approach as bold and innovative, reflecting confidence in Bitcoin's future as a corporate asset. While volatility remains a challenge, ongoing investments indicate MicroStrategy considers Bitcoin a reliable store of value over time.
MicroStrategy believes Bitcoin serves not only as an asset but also as a safeguard against global economic uncertainty. With total Bitcoin holdings exceeding $27 billion, the company continues to push boundaries in the corporate sector, reinforcing its status as a pioneer in cryptocurrency adoption.