MicroStrategy revealed a $561 million Bitcoin purchase on Monday, using proceeds from stock sales to boost its corporate reserves as the company’s stock entered the Nasdaq 100-index.
By selling 1.3 million shares in the past week, MicroStrategy expanded its Bitcoin holdings by 5,200 BTC, as reported in a filing with the SEC.
The company, known for its Bitcoin endeavors, now holds 444,262 BTC, valued at $42 billion. Since 2020, MicroStrategy has become the largest corporate holder of Bitcoin, influencing other companies to follow suit.
MicroStrategy has acquired 5,262 BTC for ~$561 million at ~$106,662 per bitcoin and has achieved BTC Yield of 47.4% QTD and 73.7% YTD. As of 12/22/2024, we hodl 444,262 $BTC acquired for ~$27.7 billion at ~$62,257 per bitcoin. $MSTRhttps://t.co/asDGerBV7q
MicroStrategy’s recent Bitcoin acquisition marked the seventh consecutive Monday of Bitcoin purchases, totaling 192,000 BTC since Nov. 11, as recorded by the Saylor Tracker, valued at around $18 billion.
Amid its ongoing Bitcoin acquisitions, MicroStrategy’s addition to the Nasdaq-100 index, alongside tech giants like Apple and Nvidia, marked a significant moment for the firm established in 1985.
MicroStrategy shares began trading on the index on Monday.
Michael Saylor, co-founder and executive chairman of MicroStrategy, noted that the latest Bitcoin purchase cost an average of around $106,600 per Bitcoin. The company’s buying spree began after Election Day, commencing at approximately $74,400 per Bitcoin.
MicroStrategy’s stock inclusion in the Nasdaq-100 benchmark was praised by Bitcoin enthusiasts, with analysts predicting significant impacts on ETF buying.
Bitwise Senior Investment Strategist Juan Leon mentioned that passive and active manager flows could boost MicroStrategy’s trading volume, potentially increasing trading activity by 20% to 40%.
“That would have a substantial impact on price,” he mentioned, suggesting a potential 50% or more increase in stock value on days of positive flows, given its inclusion in the Nasdaq-100 benchmark.
Following hawkish statements by the Federal Reserve, the price of Bitcoin dropped from an all-time high to $93,700, down from $108,000, as the Fed hinted at slower interest rate adjustments.
Michael Saylor likened Bitcoin to Manhattan real estate while expressing a commitment to continued buying at the top.
Utilizing convertible notes, MicroStrategy leveraged its purchasing power, although analysts caution about risks associated with the sizable premium in the company’s stock compared to its Bitcoin holdings.
As Bitcoin dipped below $100,000, MicroStrategy’s stock price also saw a decline, trading 6% lower at $342 on Monday morning, with a 17% drop in the past week.
Edited by Andrew Hayward
Editor’s note: This story was updated after publication to include an analyst comment.
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