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Coinpaprika 2024-12-31 09:57:32

MicroStrategy Buys $209M in Bitcoin Before Year-End

MicroStrategy has continued its aggressive Bitcoin acquisition strategy , purchasing 2,138 BTC for $209 million on December 30. Despite ongoing market uncertainty, the company remains firm in its long-term Bitcoin vision, with Michael Saylor hinting at more purchases in 2025 rather than a pause. According to an SEC filing, MicroStrategy acquired Bitcoin at an average price of $97,837 per BTC. This marks the firm’s fifth purchase in December and the eighth consecutive week of acquisitions. The move aligns with Saylor's earlier advice encouraging investors to use a dollar-cost averaging (DCA) approach when buying Bitcoin. Saylor confirmed via social media that MicroStrategy now holds 446,400 BTC, acquired for approximately $27.9 billion at an average price of $62,428 per Bitcoin. The company has achieved a quarterly BTC yield of 47.8% and a yearly yield of 74.1%. Earlier this month, MicroStrategy invested $561 million in Bitcoin following Saylor’s public support for the concept of a US Bitcoin Reserve. Additionally, he called a shareholder meeting to discuss issuing more company shares, with the proceeds directed towards further Bitcoin purchases. Despite its bold acquisition strategy, MicroStrategy remains heavily leveraged. The firm has used debt financing, equity sales, and 0% convertible bonds to fund its aggressive Bitcoin buying spree. While this approach has led MicroStrategy’s stock to outperform Bitcoin’s growth over the past year, it also leaves the company highly exposed to market volatility. The recent market correction has sparked rumors of a potential pause in MicroStrategy’s buying activity in January. However, Saylor's public statements suggest the opposite. He has consistently indicated plans for continued acquisitions rather than slowing down. Bitcoin has faced strong price resistance, with analysts predicting possible market turbulence ahead. However, Saylor seems undeterred, showing no clear signs of halting purchases despite speculation. He remains confident in Bitcoin’s long-term value and continues to view it as a cornerstone of MicroStrategy’s financial strategy. The company’s ongoing investments demonstrate its unwavering commitment to Bitcoin as a primary store of value. As 2025 approaches, all eyes remain on Saylor and MicroStrategy to see whether their relentless buying strategy will persist in the face of market uncertainties.

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