Business intelligence software provider MicroStrategy has again stepped up its Bitcoin purchases. According to documents submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, the company invested 101 million dollars to acquire 1,070 Bitcoins at an average price of 94,004 dollars between December 30 and 31 last year.
The funds for MicroStrategy's recent Bitcoin purchase mainly came from the sale of 319,586 shares of company stock during the same period, yielding exactly 101 million dollars.
As of January 5, MicroStrategy still has about 6.77 billion dollars worth of stock available for sale, which is part of the company's 21 billion dollar stock issuance plan and 21 billion dollar fixed-income securities issuance plan. MicroStrategy aims to raise 42 billion dollars over the next 3 years to continue purchasing more Bitcoin. Just last week, MicroStrategy further announced the issuance of 2 billion dollars in preferred stock to raise funds, reigniting market discussions.
So far, MicroStrategy's Bitcoin holdings have reached 447,470 coins, accounting for about 2.1% of the total Bitcoin supply (21 million coins), with a total value exceeding 44 billion dollars at current coin prices.
According to the company's co-founder and executive chairman Michael Saylor, MicroStrategy's average cost per Bitcoin is about 62,503 dollars, with a total cost of about 27.97 billion dollars (including related fees such as transaction costs).
Nine consecutive weeks of increasing Bitcoin holdings, becoming the market focus.
This marks MicroStrategy's 9th consecutive week of announcing significant increases in Bitcoin holdings. Just last week, the company purchased 2,138 Bitcoins for about 209 million dollars, with an average price of 97,837 dollars per coin; and the week before that, MicroStrategy also spent 561 million dollars to increase its Bitcoin holdings.
According to statistics, over the past 9 weeks, MicroStrategy has invested more than 18 billion dollars in purchasing Bitcoin, and the company's stock market value has risen to 83 billion dollars, far exceeding its Bitcoin net asset value (NAV). Nowadays, many investors have concerns regarding the company's NAV premium and its continued reliance on selling shares and issuing bonds to buy Bitcoin.
The scale of corporate entry in 2025 may double.
According to analysis by research agency Bernstein, in 2025, companies will continue to expand the scale of adopting Bitcoin as a reserve asset, with an expected influx of 50 billion dollars into the cryptocurrency market, far exceeding last year's 24 billion dollars.
Bernstein pointed out that MicroStrategy will continue to play a leading role in the wave of corporate adoption of Bitcoin. In addition, the capital expansion plans of Bitcoin miners and small to medium-sized enterprises emulating Michael Saylor's 'Bitcoin strategy' will further drive market development.
Gautam Chhugani, head of digital assets at Bernstein, pointed out: "Considering MicroStrategy's impressive performance over the past 4 years and its increasingly prominent market position (including being included in the Nasdaq 100 index), we believe the positive cyclical effect in the capital markets will accelerate further."
"Spent 18 billion dollars shopping in the past 9 weeks! MicroStrategy increases its holdings by 1,070 Bitcoins" was first published in (Block Geek).
