The co-founder of MicroStrategy has revealed how much Bitcoin the software company is buying in 2024. The company has made a significant BTC return thanks to last year’s performance.
Bitcoin Purchases Detailed
MicroStrategy spent a total of $22.07 billion by purchasing 258,320 BTC at an average price of $85,450 in 2024. The company achieved a BTC return of 74.3% last year as a result of this purchase.
The company started 2024 with 189,150 Bitcoin and has gained an average daily gain of 385 BTC, bringing the company’s shareholder value creation to $140,630. Saylor noted that if the Bitcoin price were at $100,000, the company would generate $14.06 billion annually, or $38.5 million per day.
Bitwise’s Head of Research Ryan Rasmussen announced that institutions’ Bitcoin holdings have doubled in the past year. This figure increased from 262,635 BTC in the fourth quarter of 2023 to 321,224 BTC in the second quarter of 2024.
Rasmussen noted that the biggest increase occurred in the fourth quarter of last year, with MicroStrategy contributing the most to that increase. Other companies included Metaplanet and Marathon Digital.
Opinions on Institutions’ Bitcoin Purchases
Matt Hougan, Bitwise’s Chief Investment Officer, said that institutions buying Bitcoin had a bigger impact than expected. Hougan said that these companies are one of the three main sources that will increase demand in 2025.
“Institutional purchases of Bitcoin are significantly affecting the market dynamics and we predict that the BTC price could reach as high as $200,000.” -Hougan
Hougan also suggested the potential for Bitcoin to rise to $500,000 if the Strategic Bitcoin Reserve is created.
MicroStrategy’s Bitcoin purchases have been concentrated late in the year, with the company planning to purchase another $2 billion worth of BTC in total during the year. The company, which continued its BTC purchases at the beginning of the new year, recently purchased 1,070 BTC for $101 million.
Recently, other companies like KULR have joined the space by creating Bitcoin treasuries. KULR increased its BTC treasury to $42 million, achieving a 93% return. These developments show that institutions are increasingly interested in digital assets and Bitcoin is becoming an important option for institutional investments.
The increasing institutional interest in Bitcoin signals positively for the future of the crypto asset market and triggers new developments in the financial ecosystem.
MicroStrategy purchased $22 billion worth of Bitcoin in 2024.
Institutions' Bitcoin reserves have doubled in the past year.
Bitwise experts predict that the Bitcoin price may continue to rise.
