MicroStrategy has boosted its Bitcoin holdings by purchasing 15,350 BTC for around $1.5 billion between December 9 and December 15, 2024. The company paid an average price of $100,386 per Bitcoin, marking the first time it bought BTC at over $100,000 per coin. This latest acquisition increases MicroStrategy’s total holdings to 439,000 BTC, valued at approximately $27.1 billion.
The company’s strategy of using Bitcoin as its main treasury asset reflects its confidence in the cryptocurrency's long-term potential. MicroStrategy's Executive Chairman, Michael Saylor, has consistently promoted Bitcoin as a hedge against inflation and fiat currency devaluation. Under his leadership, the company has transformed its financial model, prioritizing Bitcoin over traditional investment methods.
To fund this recent purchase, MicroStrategy raised $1.54 billion by selling 3.88 million shares of its Class A common stock. This approach avoids relying on loans or traditional debt, allowing the company to focus on expanding its BTC reserves through equity sales. The company reported impressive growth in its Bitcoin performance metrics. Between October 1 and December 15, it achieved a quarterly Bitcoin Yield of 46.4%, while the year-to-date figure soared to 72.4%. This yield highlights how effectively MicroStrategy uses its equity strategy to acquire Bitcoin.
Michael Saylor remains a strong advocate for Bitcoin adoption, calling it a “digital capital asset” with unmatched long-term value. His vision has positioned MicroStrategy as a leader in corporate Bitcoin investment, setting a precedent for other companies considering similar strategies. Saylor sees Bitcoin as a safeguard against economic instability, a view that continues to drive the company’s aggressive acquisition approach.
However, not everyone supports this strategy. Critics, including well-known economist Peter Schiff, argue that MicroStrategy's heavy reliance on Bitcoin carries significant risks. Schiff commented on social media that Bitcoin’s price could drop sharply if MicroStrategy stops buying or is forced to sell, particularly in a financial crisis. Such skepticism stems from Bitcoin’s volatile nature and concerns over the sustainability of MicroStrategy’s equity-based funding model.
Despite these criticisms, MicroStrategy’s Bitcoin acquisition strategy appears successful so far. The company’s growing Bitcoin Yield demonstrates the potential of its long-term plan. Analysts describe its approach as both bold and innovative, showing confidence in Bitcoin’s future role as a corporate asset. While volatility remains a key challenge, MicroStrategy’s continued investments suggest it sees Bitcoin as a reliable store of value over time.
MicroStrategy’s approach reflects its belief that Bitcoin is not just an asset but also a hedge against global economic uncertainty. With its total Bitcoin holdings now worth over $27 billion, the company’s leadership continues to push boundaries in the corporate world. Whether Bitcoin's price rises or falls, MicroStrategy’s unwavering strategy cements its reputation as a pioneer in corporate cryptocurrency adoption.
