Microstrategy continues to buy Bitcoin, raising total holdings to 447,000 BTC

MicroStrategy recently announced the purchase of an additional 1,070 BTC for a total value of about $101 million, or an average price of $94,004 per Bitcoin, over the two days of December 30-31, 2024. At the same time, the company sold 319,586 shares for the same amount during the same period.

As of January 5, 2025, MicroStrategy said it still had about $6.77 billion in saleable shares in its plan to raise $21 billion from stocks and $21 billion from bonds, to raise a total of $42 billion to continue buying Bitcoin. Last week, the company also announced the possibility of issuing an additional $2 billion in preferred shares.

Currently, MicroStrategy owns 447,470 BTC, worth more than $44 billion. These Bitcoins are purchased for an average of $62,503 per coin, a total cost of about $27.97 billion, including fees and costs incurred.

According to Co-Founder and Executive Chairman Michael Saylor, the number of Bitcoins the company holds now accounts for about 2.1% of the total supply of 21 million BTC. To mark Bitcoin's $100,000 milestone, Saylor hosted a celebratory party at his home in Miami on New Year's Eve.

MicroStrategy's buy-in activity has been ongoing for the past nine weeks. Last week, the company also purchased 2,138 BTC for a total value of about $209 million, or an average price of $97,837 per coin.

A week earlier, the company spent $561 million to buy Bitcoin. In total, MicroStrategy has spent more than $18 billion in the past nine weeks to replenish its BTC holdings.

The company's market capitalization now stands at $83 billion, trading at a large spread over the net asset value (NAV) from the amount of Bitcoin they own, leaving some investors concerned about the sustainability of its strategy of buying Bitcoin with equity and debt.

Analysts from Bernstein predict the trend for businesses to add Bitcoin to their coffers will continue to rise sharply in 2025, with investment cash flow expected to reach more than $50 billion, compared with $24 billion the previous year.

MicroStrategy, which accounted for 90% of business Bitcoin purchases in 2024, is expected to continue to lead the trend. This is followed by Bitcoin mining companies that expand capital plans and small businesses and have just wanted to adopt Michael Saylor's model.

According to Bernstein, with a 4-year history of implementing Bitcoin buying strategies and increasing prominence, including inclusion in the Nasdaq 100 index, MicroStrategy is expected to accelerate its development.

The company uses the “Bitcoin Yield” performance index to measure the increase in Bitcoin holdings compared to the number of shares issued. In 2024, the index reached 74.3%, reflecting significant growth while maintaining balance with stock dilution.

MicroStrategy shares closed at $339.66 on Friday, up 13.2 percent on the day and more than 431 percent over the past year. In pre-opening trading on January 6, 2025, the stock continued to rise by 3.7%, indicating investor confidence in the company's long-term strategy.