Micro strategy adds more weight! Total Bitcoin holdings hit new high
(CryptoCity) reported yesterday (12/30) that in the past, Michael Saylor, the founder of MicroStrategy, would definitely announce his purchase of Bitcoin as soon as he published a post related to "SaylorTracker". Sure enough, I added Bitcoin to my strategy again! According to the latest announcement, the company spent $200 million to purchase 2,138 Bitcoins between December 23 and December 29, with an average purchase price of $97,837 per coin.
This move brings MicroStrategy’s total Bitcoin holdings to more than 446,400, which is worth nearly $41.8 billion based on current market prices. Executive Chairman Michael Saylor emphasized that MicroStrategy will continue to work on the "21/21 Plan" before reaching the goal of US$42 billion (raising US$21 billion within three years and cooperating with the issuance of fixed income securities, totaling US$42 billion) , the capital allocation strategy will be re-examined after reaching the target.
To fund this Bitcoin purchase, MicroStrategy sold 592,987 shares of stock and raised $209 million, indicating the company's determination to strengthen its Bitcoin position remains strong. There is public concern that, as it recently announced plans to expand its authorized share count and preferred shares, MicroStrategy may continue to actively acquire Bitcoin in the short term.
After eight consecutive weeks of major purchases, stock price dynamics remain volatile.
In fact, MicroStrategy recently caused investor concerns over dilution effects by issuing more new shares, resulting in a temporary drop in stock price. However, the company continued to buy Bitcoin in the following two weeks: last week, it made a substantial purchase of 5,000 Bitcoins (approximately $561 million), and now it has added another 2,138 Bitcoins, marking its eighth consecutive week of increasing its Bitcoin holdings.
It is worth noting that although MicroStrategy's stock price (MSTR) has recently been quite volatile, the increase since the beginning of the year is still considerable. Many crypto enthusiasts see it as an alternative investment vehicle for Bitcoin. MicroStrategy's average purchase cost is around $62,000; if Bitcoin can maintain high levels or reach new highs, the long-term returns from the company's investments may be even more significant. According to data from SaylorTracker, despite market fluctuations, MicroStrategy's 'paper profits' from Bitcoin remain significantly ahead, and bullish confidence does not seem to be affected by short-term pullbacks.
Source: SaylorTracker Overview of MicroStrategy's Bitcoin Holdings
New Year capital allocation reshuffling, major players are bullish on Bitcoin.
Even with recent market volatility, MicroStrategy's aggressive purchasing actions towards Bitcoin are still causing quite a stir in the investment and crypto circles. On one hand, after the 2024 U.S. presidential election, the public expects the new government may have a more open attitude towards digital asset policies; on the other hand, the International Monetary Fund (IMF) has expressed concerns about multiple countries holding crypto assets, but many companies and institutions are still willing to increase their positions.
MicroStrategy repeatedly proves that its executives have a strong belief in Bitcoin's status as 'digital gold'; in the future, as more large enterprises and financial institutions expand their investment in Bitcoin, it will inevitably enhance Bitcoin's acceptance and status in the mainstream market.
As for whether MicroStrategy can successfully use a large reserve of Bitcoin as part of its financial strategy in the future, it has become a focal point of investor attention. If the market rises, the company may significantly expand its corporate value; if the market fluctuates, it may need to combine other financial operations to support its capital structure. Regardless, MicroStrategy's recent 'frenzied buying' of Bitcoin once again declares to the market: the long-term optimism towards crypto assets is not just a slogan.
'MicroStrategy strikes again! Another $200 million spent on Bitcoin, but stock price dynamics remain volatile?' This article was first published on 'Crypto City'.
