MicroStrategy, the business intelligence firm and major Bitcoin investor, has continued its aggressive cryptocurrency purchasing strategy. The company announced it acquired 2,138 BTC for $209 million, bringing its total holdings to 446,400 BTC, currently valued at approximately $41.5 billion.
Latest Bitcoin Purchase and Funding
On December 30, MicroStrategy disclosed that it bought the Bitcoin between December 23 and 29, paying an average price of $97,837 per BTC. The acquisition was funded by selling 592,987 shares during the same week, according to the company’s filings.
This marks the eighth consecutive week of Bitcoin purchases by MicroStrategy. Since October 31, the firm has added 194,180 BTC to its holdings. However, the latest purchase reflects a significant drop in volume compared to November, when the company acquired over 100,000 BTC in a single month.
Bitcoin Yield Soars to 74% in 2024
MicroStrategy reported a year-to-date Bitcoin yield of 74.1% as of December 30, with a quarterly yield of 47.8% from October 1 to December 29. The impressive returns underscore the company’s commitment to its Bitcoin strategy despite market volatility.
Michael Saylor, the company’s co-founder and executive chairman, hinted at the recent purchase in a December 29 statement. He mentioned “disconcerting” patterns on the Saylor Tracker, a platform monitoring MicroStrategy’s Bitcoin transactions. Saylor has consistently stated that the company will continue buying Bitcoin at any price, even if it rises to $1 million per coin.
Plans to Increase Authorized Shares
MicroStrategy is seeking to expand its ability to issue additional shares to fund future Bitcoin acquisitions. In a December 23 filing with the U.S. Securities and Exchange Commission, the company requested approval to increase the number of authorized Class A common stock from 330 million to 10.33 billion shares.
Additionally, MicroStrategy is proposing to raise the authorized preferred stock from 5 million to over 1 billion shares. This move would provide the firm with greater flexibility to raise capital for its Bitcoin investments and other corporate initiatives.
A Consistent Bitcoin Investment Strategy
MicroStrategy’s latest Bitcoin purchase reinforces its position as one of the largest corporate holders of the cryptocurrency. Despite reducing the scale of its purchases compared to previous months, the firm continues to make weekly acquisitions, reflecting its long-term bullish stance on Bitcoin.
With plans to increase authorized shares and a reported yield of 74% for 2024, MicroStrategy remains a significant player in the crypto space, potentially setting the stage for further expansion in its Bitcoin holdings.
