Business intelligence software provider MicroStrategy makes another significant investment in Bitcoin! According to documents submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, MicroStrategy spent $1.5 billion to acquire 15,350 Bitcoins at an average price of $100,386 between December 9 and 15.
The funds for this Bitcoin purchase by MicroStrategy mainly came from the sale of over 3.88 million shares of the company’s stock during the same period, yielding exactly $1.5 billion.
As of December 15, MicroStrategy still has about $7.65 billion worth of stock available for sale, which is part of the company's $21 billion stock issuance plan and $21 billion fixed-income securities issuance plan. MicroStrategy aims to raise $42 billion over the next three years to continue purchasing more Bitcoin.
So far, MicroStrategy's Bitcoin holdings have reached 439,000 coins, accounting for about 2.1% of the total Bitcoin supply (21 million coins), with a total value exceeding $45 billion based on current market value.
According to the company's co-founder and executive chairman Michael Saylor, the average cost of the Bitcoins held by MicroStrategy is about $61,725 per coin, with a total cost of approximately $27.1 billion (including fees and related expenses).
Spending $17.5 billion on Bitcoin in 6 weeks! Market views are polarized.
This marks MicroStrategy's sixth consecutive week of announcing significant investments in Bitcoin. Just last week, the company spent about $2.1 billion to purchase 21,550 Bitcoins, averaging $98,783 per coin; and the week before that, MicroStrategy also invested $1.5 billion to increase its Bitcoin holdings.
In other words, over the past six weeks, MicroStrategy has purchased a total of $17.5 billion in Bitcoin, accounting for about 39% of the current $45 billion worth of holdings.
However, such an aggressive strategy has also sparked polarized views in the market. Despite MicroStrategy's market value soaring to $92 billion, with its stock price exceeding the estimated net asset value (NAV) of its Bitcoin holdings, many investors remain cautious about the company's reliance on raising funds through stocks and bonds to continue purchasing Bitcoin.
However, analysts from research firm Bernstein believe that MicroStrategy's Bitcoin strategy still has room for further advancement.
They pointed out that as MicroStrategy buys more Bitcoin, the market valuation premium will gradually become more rationalized, and with the company's current leverage ratio (convertible bonds accounting for 18% of Bitcoin net value) still having room for expansion, it means the company can still issue more convertible bonds to raise funds. Analysts emphasized:
If Bitcoin prices continue to consolidate around $100,000, MicroStrategy should be able to maintain this pace of investment.
Officially joining the Nasdaq 100 index.
It is worth noting that MicroStrategy will officially join the Nasdaq 100 index on December 23, becoming the 40th largest company in the index, accounting for about 0.47%.
This also means that popular exchange-traded funds (ETFs) like QQQ will simultaneously buy MicroStrategy shares, with Bloomberg analyst James Seyffart estimating that this will bring in at least $2.1 billion in capital inflow.
Bernstein analysts believe that this inclusion in the Nasdaq 100 index will further enhance MicroStrategy's market value and market liquidity, creating a 'capital flywheel effect' that allows the company to continuously sell stocks and purchase Bitcoin.
To those who are not optimistic about Bitcoin, this may sound like a nightmare, but MicroStrategy's strategy is to continuously buy Bitcoin and hold it long-term until Bitcoin surpasses gold and even breaks $1 million.
Next, the market is more concerned about whether MicroStrategy is likely to join the S&P 500 index in 2025.
Although the profit performance of the company's core software business has not yet met expectations, the newly implemented FASB cryptocurrency accounting rules will allow the company to include unrealized gains and losses from Bitcoin investments in its financial reports, which could potentially become a key boost for MicroStrategy's entry into the S&P 500.