MicroStrategy Acquires 2,138 Bitcoin for $209 Million in December
MicroStrategy Inc. (NASDAQ: MSTR) has made another strategic investment in Bitcoin, acquiring approximately 2,138 #BTC for about $209 million between December 23 and December 29, 2024, as documented in a Form 8-K filed with the SEC on December 30. To fund this purchase, the company sold 592,987 shares, retaining around $6.88 billion in shares to support its long-term Bitcoin strategy.
In late October, MicroStrategy entered into a sales agreement with several financial institutions to raise $21 billion through the sale of its Class A common stocks for additional Bitcoin purchases. The company has now acquired Bitcoins for eight consecutive weeks despite market volatility. Currently, MicroStrategy holds approximately 446,400 Bitcoins, purchased at an aggregate price of around $27.9 billion, averaging $62,428 per Bitcoin including fees and expenses.
As a result of these acquisitions, MicroStrategy achieved a Bitcoin Yield of 47.8 percent quarter-to-date (QTD) and 74.1 percent year-to-date (YTD), which measures the percentage change in the ratio of its Bitcoin holdings to shares outstanding.
Market Impact of MicroStrategy's Bitcoin Move
The ongoing stock sales to acquire more Bitcoin have significantly affected MicroStrategy's stock performance, with MSTR stock declining over 19 percent in the past month to approximately $305 during early trading on Monday. This decline correlates with Bitcoin's price correction below the critical support level of around $93,000. As of this writing, Bitcoin is trading at about $91,402, having increased by more than 14 percent over the past three weeks.
On-chain data analysis from IntoTheBlock suggests that Bitcoin could drop below $90,000 after losing support above $95,500. However, a potential Bitcoin price correction of up to 30 percent from around $100,000 may set the stage for a significant bullish trend in Q1 2025. Additionally, increased institutional investment in Bitcoin is observed as a hedge against inflation and fiat currency devaluation globally.