MicroStrategy made headlines on Monday by announcing its purchase of an additional $561 million worth of Bitcoin, marking its seventh consecutive week of Bitcoin acquisitions. The purchase comes as the company begins trading as a member of the Nasdaq-100 equity index. MicroStrategy now holds a total of 444,262 BTC, valued at over $41 billion, with an average purchase price of $106,662 per coin, the highest cost the firm has ever paid per BTC.
This latest purchase has contributed to MicroStrategy’s impressive Bitcoin yield of 47.4% quarter-to-date and 73.7% year-to-date, raising the average cost to $62,257 per Bitcoin. The company funded this recent Bitcoin acquisition by selling 1.3 million shares of its stock last week, generating roughly $561 million in net proceeds. MicroStrategy’s foray into the cryptocurrency market began in 2020 and has continued with this recent purchase, solidifying its position as a major player in the industry.
MicroStrategy’s addition to the Nasdaq-100 index earlier this month signifies a step towards mainstream acceptance of the fast-growing cryptocurrency sector. The company’s shares officially started trading as part of the index on December 23, further bolstering its presence in the financial markets. With plans to raise $42 billion in capital to support future Bitcoin purchases, MicroStrategy remains committed to its treasury reserve strategy, with about $7 billion worth of shares still available for sale as part of its equity offering.
CEO Michael Saylor’s pledge to continue purchasing Bitcoin even at peak prices demonstrates the company’s bullish stance on the cryptocurrency. Despite a recent 13.7% drop in the price of BTC from its record high above $108,000, Saylor remains confident in the long-term potential of Bitcoin, stating that he would be willing to buy the digital asset even at $1 million per coin. The recent price correction was attributed to Federal Reserve Chair Jerome Powell’s announcement of a slower pace of interest rate reductions in 2025.
As of publication time, Bitcoin is trading at $93,458, representing a 2.3% drop on the day. Despite short-term price fluctuations, MicroStrategy’s continued commitment to acquiring Bitcoin at unprecedented levels reflects the company’s confidence in the cryptocurrency’s future growth potential. With a significant amount of Bitcoin in its treasury reserve, MicroStrategy is positioning itself as a key player in the evolving cryptocurrency market, further solidifying its reputation as a prominent Bitcoin treasury company.
