MicroStrategy Acquires Additional 1,070 BTC for $101 Million

QuickTake

• MicroStrategy has acquired 1,070 Bitcoin (BTC) for approximately $101 million at an average price of $94,004 per BTC.

• The purchase coincides with the sale of 319,586 MicroStrategy shares for the same monetary amount.

• Total BTC holdings now stand at 447,470 BTC, worth over $44 billion.

• The company’s average acquisition cost for BTC is $62,503 per coin.

• MicroStrategy’s aggressive strategy accounts for around 2.1% of Bitcoin’s total supply.

  MicroStrategy, the prominent business intelligence firm and corporate Bitcoin advocate, has further solidified its position as the largest institutional Bitcoin holder. According to a recent 8-K filing with the Securities and Exchange Commission (SEC), the company has acquired an additional 1,070 BTC for $101 million at an average price of $94,004 per coin. The acquisition occurred between December 30, 2024, and January 5, 2025, reflecting the company’s unwavering commitment to its Bitcoin accumulation strategy.

  Strategic Stock Sale Fuels Bitcoin Acquisition

  The purchase was facilitated by the sale of 319,586 MicroStrategy shares during the same period, also amounting to $101 million. This move is part of a broader equity and debt-financed strategy that has been pivotal in enabling the company’s Bitcoin acquisitions. As of January 5, approximately $6.77 billion worth of shares remain available for sale under the company's ongoing $21 billion equity offering and a $21 billion fixed-income securities capital raise. Combined, these initiatives aim to raise a total of $42 billion for further Bitcoin investments.

  Expanding Financial Plans

  MicroStrategy’s capital strategy continues to evolve. Recently, the company announced a potential $2 billion preferred stock offering to bolster its financial flexibility further. This plan expands the company’s previously outlined 21/21 plan, designed to fund its aggressive Bitcoin purchase program. Such measures underscore the company’s commitment to scaling its Bitcoin holdings as part of its long-term vision.

  MicroStrategy’s Impressive Bitcoin Portfolio

  With the latest acquisition, MicroStrategy now holds 447,470 BTC, a stake worth over $44 billion based on current market prices. These holdings represent approximately 2.1% of Bitcoin’s fixed supply of 21 million coins. The company’s average acquisition cost per Bitcoin stands at $62,503, with total expenditures nearing $27.97 billion, inclusive of fees and expenses.

  Michael Saylor, MicroStrategy’s co-founder and executive chairman, remains a vocal proponent of Bitcoin. Known for his bullish outlook, Saylor recently celebrated Bitcoin reaching the $100,000 milestone at a New Year’s Eve gathering in Miami. His leadership continues to inspire other corporations to consider Bitcoin as a treasury asset.

  A Consistent Acquisition Streak

  MicroStrategy’s latest purchase marks the ninth consecutive week of Bitcoin acquisitions. Last week, the company announced it had acquired 2,138 BTC for $209 million in cash at an average price of $97,837 per coin. The week prior, MicroStrategy added $561 million worth of Bitcoin to its balance sheet. These consistent purchases have contributed to the firm’s significant $18 billion Bitcoin expenditure over the past nine weeks alone.

  Investor Reactions and Market Dynamics

  Despite its bold strategy, MicroStrategy’s approach has not been without criticism. Some investors question the company’s premium-to-net-asset-value (NAV) valuation and its reliance on equity and debt to fund Bitcoin purchases. However, MicroStrategy’s market cap, currently at $83 billion, demonstrates strong investor confidence in its vision.

  Broader Corporate Adoption Expected in 2025

  The trend of corporate Bitcoin adoption is poised for significant growth in 2025. Research analysts at Bernstein anticipate more than $50 billion in corporate treasury inflows into Bitcoin, up from $24 billion in 2024. MicroStrategy, which accounted for approximately 90% of corporate Bitcoin purchases in 2024, is expected to remain at the forefront of this trend.

  Bitcoin miners and mid-sized corporates are also likely to contribute to the expanding adoption, drawing inspiration from MicroStrategy’s model. Analysts predict that small and mid-cap companies will increasingly integrate Bitcoin into their treasury strategies as they recognize its potential as a hedge against inflation and currency devaluation.

  Conclusion

  MicroStrategy’s relentless pursuit of Bitcoin underscores its belief in the cryptocurrency’s long-term value. The company’s strategic acquisitions, backed by innovative financial maneuvers, have positioned it as a leader in corporate Bitcoin adoption. As 2025 unfolds, MicroStrategy’s actions will likely continue to influence the broader adoption of Bitcoin among institutions, setting a precedent for others to follow.