MicroStrategy Acquires $1.5 Billion in Bitcoin, Surpassing 439,000 BTC Holdings

MicroStrategy has bolstered its Bitcoin holdings with an additional acquisition of 15,350 BTC, investing approximately $1.5 billion. The purchase, completed between December 9 and December 15, 2024, reflects an average price of $100,386 per Bitcoin, including fees.

This is the first time that MicroStrategy purchased Bitcoin with an average price above $100,000. The strategic move aligns with the company’s commitment to Bitcoin as its primary treasury reserve asset.

Michael Saylor’s Vision for Bitcoin

The latest acquisition brings MicroStrategy’s total Bitcoin holdings to 439,000 BTC. These holdings were accumulated at a total cost of $27.1 billion, with an average purchase price of $61,725 per BTC. MicroStrategy funded the latest purchase through proceeds raised under its equity sales agreement, as outlined in its December 16, 2024, Form 8-K filing.

The report also highlighted the company’s impressive Bitcoin Yield, a key performance indicator (KPI) used to measure the relative growth of its BTC holdings against diluted share issuance. From October 1 to December 15, MicroStrategy achieved a quarterly BTC Yield of 46.4%. Year-to-date, the metric surged to 72.4%, underlining the company’s strategic success in leveraging equity sales to acquire Bitcoin.

MicroStrategy’s Executive Chairman, Michael Saylor, remains an outspoken advocate for Bitcoin adoption. Saylor continues to emphasize the long-term value of Bitcoin as a “digital capital asset.” Under his leadership, MicroStrategy has transformed its financial strategy, using Bitcoin as a hedge against fiat currency devaluation and inflation.

MicroStrategy’s ability to fund large-scale Bitcoin purchases stems from its equity sales agreements. During the same period of its BTC acquisitions, the company issued and sold 3,884,712 shares of its Class A common stock, generating $1.54 billion in proceeds. This strategy enables MicroStrategy to accumulate Bitcoin without relying on traditional debt financing.

The company’s aggressive approach continues to set a benchmark for corporate Bitcoin adoption. Analysts view the company’s BTC-focused strategy as both bold and pioneering, reflecting a future where Bitcoin increasingly serves as a corporate asset.

However, MicroStrategy also has its critics, such as economist Peter Schiff.

“Just as I suspected. Imagine how much lower the Bitcoin price will fall when you stop buying. Then imagine how much lower it will go when creditors force you to sell,” Schiff wrote on X (Twitter).

While some critics question the sustainability of this model, the increase in MicroStrategy’s Bitcoin Yield highlights its success. With Bitcoin’s volatility remaining a consideration, MicroStrategy’s strategy demonstrates confidence in Bitcoin as a long-term value store.