In a move that has become almost routine, MicroStrategy has once again made headlines by acquiring a massive amount of Bitcoin (BTC).
MicroStrategy purchased 15,400 BTC for approximately $1.5 billion in cash, according to a Form 8-K, which public companies use to announce unexpected material events or corporate changes, filed with the U.S. Securities and Exchange Commission (SEC) on Dec. 2.
The business intelligence company paid an average price of $95,976 per Bitcoin, including fees and expenses.
This purchase brings MicroStrategy’s Bitcoin return to 38.7% for the quarter and 63.3% year-to-date.
MicroStrategy has acquired 15,400 BTC for ~$1.5 billion at ~$95,976 per #bitcoin and has achieved BTC Yield of 38.7% QTD and 63.3% YTD. As of 12/2/2024, we hodl 402,100 $BTC acquired for ~$23.4 billion at ~$58,263 per bitcoin. $MSTR https://t.co/K3TK4msGp0
— Michael Saylor (@saylor) December 2, 2024
Strategic Stock Sales Fuel Bitcoin Accumulation
This latest purchase was funded through the sale of Class A common stock under a previously established sales agreement. Between Nov. 25 and Dec. 1, MicroStrategy sold approximately 3.7 million shares, generating net proceeds of around $1.48 billion after deducting sales commissions.
This sale is part of a broader plan under the sales agreement with various financial institutions, which allows for the issuance and sale of up to $21 billion worth of shares.
As of Dec. 1, MicroStrategy’s total Bitcoin holdings stand at 402,100 BTC, acquired at an aggregate purchase price of roughly $23.4 Billion. This equates to an average price of $58,263 per Bitcoin, including associated fees and costs.
MicroStrategy’s Bitcoin holdings and share dilution. Source: MicroStrategyThe sales agreement, initiated on Oct. 30 with TD Securities (USA) LLC and other sales agents, has facilitated the sale of shares, leaving the company with approximately $11.3 billion worth of shares available for future transactions.
2025 Will Become the “Year of the Crypto Renaissance”
MicroStrategy continues to actively accumulate Bitcoin. To fund these purchases, the company is strategically issuing shares to expand its cryptocurrency holdings.
This strategy aligns with CEO Michael Saylor’s vocal support for Bitcoin, further solidifying MicroStrategy’s position as a leading institutional holder of the cryptocurrency.
MicroStrategy calls Bitcoin as “the highest performing uncorrelated asset that a corporation can hold on its balance sheet” in its recent presentation about the company’s Bitcoin strategy.
In the presentation, MicroStrategy predicts that 2025 will be the “year of the crypto renaissance.” This prediction is based on anticipated developments such as Wall Street’s embrace of Bitcoin exchange-traded funds (ETFs), widespread adoption of fair value accounting for digital assets, and a pro-Bitcoin stance from the next U.S. president and cabinet.
Further supporting this “renaissance” are MicroStrategy’s expectations of growing congressional support for crypto, the establishment of a “Bitcoin Strategic Reserve”, and a clear regulatory framework for digital assets in the U.S.
MicroStrategy’s stock (MSTR) is closely tied to Bitcoin’s performance, but with amplified swings. While Bitcoin is up 150% this year, MSTR has surged by 513%. This heightened volatility was clear in November when MSTR soared 58%, exceeding Bitcoin’s 37% gain for the month.
$MSTR November 2024 Returns: +58.47%
December will be very interesting to see how we close out this amazing quarter and year.
Then onto 2025. pic.twitter.com/RgtXfQWn5H
— MSTR Updates (@MSTRUpdates) November 30, 2024
More Companies Embrace Bitcoin as Inflation Hedge
MicroStrategy is not alone in its pursuit of Bitcoin. A growing number of companies are adding the cryptocurrency to their balance sheets as a potential hedge against inflation.
Artificial intelligence firm Genius Group also joined the trend on Nov. 18, purchasing 110 Bitcoin for $10 million and outlining its intention to hold up to 90% of its reserves in Bitcoin in the future.
Additionally, tech solution provider Semler Scientific increased its Bitcoin holdings to 1,570 BTC by purchasing 297 coins for $29.1 million between Nov. 18 and 22 at an average price of $75,039 per coin.
Adding to this trend, Japanese investment firm Metaplanet plans to raise over $62 million through a stock acquisition plan to buy more Bitcoin, adding to its current holdings of 1,142 Bitcoin.
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