MicroStrategy Inc announced another Bitcoin purchase at a price below the dollar-cost average, signaling a buy at Bitcoin’s local top. Despite this, the company remains profitable with its Bitcoin portfolio, with an average cost of $62,257 for their holdings. The recent purchase of 5,262 BTC for $561 million marks their lowest disclosed buy since July 2024. Known Bitcoin critic Peter Schiff commented on this purchase, mentioning a “firepower” loss for the company.
The recent purchase is approximately three times lower than the previous purchase at $100,000 and nearly four times lower than the one before that. MicroStrategy made two buys superior to 50,000 BTC in November, which were nearly ten times higher than the recent acquisition. Former Wall Street analyst Novacula Occami commented on Michael Saylor’s strategy, highlighting its reliance on buying during Bitcoin rallies to attract retail traders.
MicroStrategy’s stock is trading at a premium against its Bitcoin holdings, with a market capitalization two times higher than its BTC holdings. While MSTR stock is trading at $344.27, BTC is trading at $93,113, at a 12% discount from Saylor’s most recent average Bitcoin acquisition price. After every MicroStrategy purchase, BTC has experienced a drop below the average, leading to criticisms of Saylor’s Bitcoin strategy. However, the company’s high time frame results show a significant profit of nearly $15 billion.
Overall, MicroStrategy’s purchases of Bitcoin have attracted attention and criticism from analysts and experts in the field. Despite fluctuations in Bitcoin prices following their purchases, the company continues to hold a substantial amount of BTC and remains profitable overall. As Bitcoin and cryptocurrency investments continue to gain traction in the market, MicroStrategy’s approach to integrating Bitcoin into its portfolio will be closely monitored by investors and industry experts alike.
