MicroStrategy has increased its Bitcoin holdings with an additional purchase 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 MicroStrategy has purchased Bitcoin at an average price above $100,000. The strategic move is in line 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 with proceeds raised under its stock sales agreement, as outlined in its Form 8-K filing dated December 16, 2024.
The report also highlighted the company’s impressive Bitcoin Yield, a key performance indicator (KPI) used to measure the relative growth of its BTC reserves relative to diluted share issuance. From October 1 to December 15, MicroStrategy achieved a quarterly Bitcoin Yield of 46.4%. Year-to-date, the metric has risen to 72.4%, highlighting the company’s strategic success in leveraging share sales to acquire Bitcoin.
MicroStrategy CEO Michael Saylor remains a vocal advocate for Bitcoin adoption. Saylor continues to emphasize Bitcoin’s long-term value 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.
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Additionally, MicroStrategy’s ability to fund large-scale Bitcoin purchases stems from its stock sales agreements. However, during the same period of its BTC purchases, the company issued and sold 3,884,712 shares of its Class A common stock, generating $1.54 billion in proceeds. This strategy allows MicroStrategy to accumulate Bitcoin without relying on traditional debt financing.
The company’s aggressive approach continues to set a standard for corporate Bitcoin adoption. Analysts see the company’s BTC-focused strategy as 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 the price of Bitcoin will drop when you stop buying. Then imagine how much it will drop when lenders force you to sell,” Schiff wrote on X (formerly Twitter).
While some critics question the sustainability of this model, MicroStrategy’s increase in Bitcoin Yield highlights its success. With Bitcoin’s volatility remaining a consideration, MicroStrategy’s strategy demonstrates confidence in Bitcoin as a long-term store of value.
The article MicroStrategy acquires $1.5 billion in Bitcoin appeared first on BeInCrypto Brasil.
