Business intelligence firm and corporate bitcoin holder MicroStrategy acquired an additional 1,070 BTC for approximately $101 million at an average price of $94,004 per bitcoin between Dec. 30 and Jan. 5, according to an 8-K filing with the Securities and Exchange Commission on Monday.
It follows the sale of a further 319,586 MicroStrategy shares during the same period for the same amount. As of Jan. 5, the company said approximately $6.77 billion worth of shares remained available for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities capital raise, targeting a total $42 billion for further bitcoin acquisitions. Last week, the company expanded that 21/21 plan, announcing a potential $2 billion preferred stock offering.
The company now holds 447,470 BTC, worth over $44 billion. MicroStrategy’s total holdings were bought at an average price of $62,503 per bitcoin, a total cost of around $27.97 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor, who celebrated bitcoin's recent $100,000 milestone at a party in his Miami home on New Year's Eve. To put that in perspective, MicroStrategy now holds around 2.1% of bitcoin’s total 21 million supply.
MicroStrategy's latest announcement is now the ninth week in a row following news last Monday that it had acquired another 2,138 BTC for roughly $209 million in cash at an average estimated price of $97,837 per coin, including fees and expenses, and $561 million worth of bitcoin the week before.
MicroStrategy has now acquired more than $18 billion worth of bitcoin over the past nine weeks alone, with its $83 billion market cap trading at a significant premium to its bitcoin net asset value. Many investors have reservations about MicroStrategy's premium to NAV valuation and its equity and debt-funded bitcoin acquisition program in general.
Analysts at research and brokerage firm Bernstein expect continued growth in corporate treasury adoption in 2025, anticipating inflows of more than $50 billion in 2025 compared to $24 billion last year. MicroStrategy, which accounted for around 90% of corporate purchases in 2024, is again likely to lead demand, according to the analysts, followed by Bitcoin miners scaling up their capital plans and small/mid-cap corporates looking to emulate Michael Saylor’s model.
"Given MicroStrategy’s 4 year track record and its rising profile (including Nasdaq 100 inclusion), we expect capital markets flywheel to further accelerate," Bernestein digital assets lead Gautam Chhugani wrote in a note to clients on Monday.
MicroStrategy uses a key performance indicator it calls “Bitcoin Yield” to measure the percentage change in its bitcoin holdings relative to its diluted shares. The firm’s 2024 Bitcoin Yield is 74.3%, reflecting significant growth in holdings while balancing share dilution amid the company’s strategy of acquiring bitcoin efficiently to benefit shareholders.
MicroStrategy shares closed up 13.2% at $339.66 on Friday, having gained more than 431% over the past year, according to TradingView. The stock is currently up 4.3% in pre-market trading on Monday.
MSTR/USD price chart. Image: TradingView.
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