MicroStrategy Acquires 11,000 Bitcoins for $1.1 Billion
MicroStrategy Inc (NASDAQ: MSTR) has acquired approximately 11,000 Bitcoins for about $1.1 billion between January 13 and January 20, 2025. This brings its total holdings to around 461,000 Bitcoins, valued at approximately $47 billion.
Key points include:
- MicroStrategy spent around $29.3 billion on its Bitcoin investments, with an average purchase price of $63,610 per Bitcoin.
- The company holds an unrealized profit of about $17.7 billion from its Bitcoin investments.
- From January 1 to January 20, 2025, MicroStrategy reported a BTC yield of 1.69%.
- 3,012,072 shares were sold in the same period to raise $21 billion, leaving about $5.42 billion worth of shares available for further Bitcoin purchases.
- Shareholders will vote on a proposed increase of Class A common stock from 330 million to 10.3 billion shares.
MicroStrategy's strategy has influenced other companies, encouraging them to invest in Bitcoin as a hedge against inflation. For instance, KULR Technology Group Inc purchased $8 million worth of Bitcoin, currently holding about 510 coins.
The overall supply of Bitcoins on centralized exchanges has decreased to approximately 2.19 million from over 2.7 million a year ago. Institutional interest in Bitcoin is growing, with proposals for strategic BTC reserves introduced in states like Texas, Massachusetts, and Utah.
This trend may support a bullish outlook for Bitcoin prices as traditional investments shift towards cryptocurrency products.