MicroStrategy, the world’s largest corporate holder of Bitcoin, announced it purchased 1,070 BTC during the last two days of 2024, marking its first Bitcoin acquisition of the year. The company revealed the purchase on January 6, 2025, detailing that it spent approximately $101 million in cash to acquire the BTC on December 30–31, 2024, at an average price of $94,004 per Bitcoin, according to a filing with the U.S. Securities and Exchange Commission (SEC).
Latest Bitcoin Holdings
With this latest acquisition, MicroStrategy’s total Bitcoin holdings now stand at 447,470 BTC, which were purchased at an average price of $62,503 per Bitcoin, amounting to around $27.97 billion as of January 5, 2025. This significant stockpile represents about 2.1% of all Bitcoin that will ever be mined.
As in previous instances, the recent purchase was funded through proceeds from the issuance and sale of shares under a convertible notes sales agreement.
Hints from Michael Saylor
The announcement of the purchase came shortly after MicroStrategy’s co-founder, Michael Saylor, hinted at the acquisition in a post on January 5, sharing a Bitcoin chart from the SaylorTracker website. This move generated speculation about the company’s ongoing Bitcoin strategy.
Slower Pace of Purchases
While MicroStrategy’s most recent acquisition underscores its commitment to Bitcoin, the company has slowed down its buying activity in recent months. Between December 2–31, 2024, the firm acquired 45,370 BTC, which represents just 30% of its Bitcoin purchases made between October 31 and December 1, 2024.
This slower pace comes amid a broader cautionary outlook from some industry figures, including BitMEX co-founder Arthur Hayes, who warned of potential market volatility, particularly with the upcoming U.S. presidential inauguration in January 2025.
Potential Blackout Period and Future Plans
Reports suggest that MicroStrategy may enter a “blackout” period in January 2025, which would pause its ability to issue shares and convertible bonds for further Bitcoin purchases. Despite this, the company has recently announced plans to raise up to $2 billion from a perpetual preferred stock offering to fund additional Bitcoin buys, although the decision to move forward with this offering will depend on market conditions and the company’s discretion.
Conclusion
MicroStrategy’s latest Bitcoin purchase continues its strategy of accumulating BTC, despite a slowdown in buying activity over recent months. With over 447,000 Bitcoin in its reserves and plans to potentially raise additional capital for further acquisitions, the company’s commitment to Bitcoin remains clear as it navigates market conditions in 2025.
The post MicroStrategy Begins 2025 with Purchase of 1,070 Bitcoin appeared first on Koinreport.
