MicroStrategy recently purchased 15,350 Bitcoin between December 9th and 15th, 2024, for $1.5 billion at an average price of $100,386 per BTC. This acquisition brings the company’s total Bitcoin holdings to a staggering 439,000 BTC, currently valued at over $45 billion. The purchase was financed through the sale of 3,884,712 Class A shares, further solidifying MicroStrategy’s commitment to Bitcoin as a primary treasury reserve asset. To date, the company’s total investment in Bitcoin stands at $27.1 billion, with an average purchase price of $61,725 per coin.
This latest purchase follows a significant acquisition just one week prior, where MicroStrategy added 21,550 BTC to its portfolio for $2.1 billion. In the past six weeks alone, the company has invested $17.5 billion in Bitcoin, representing 39% of its total holdings. Notably, MicroStrategy’s market capitalization has surged to $92 billion, with its stock trading at a premium compared to its Bitcoin net asset value.
Executive Chairman Michael Saylor has reiterated his unwavering belief in Bitcoin, stating his intent to continue purchasing even at significantly higher price points. The company utilizes a “Bitcoin Yield” metric, tracking Bitcoin’s growth relative to diluted shares, which currently stands at an impressive 72.4% year-to-date as of December 15th. MicroStrategy’s aggressive Bitcoin acquisition strategy has coincided with significant market recognition.
On December 14th, Nasdaq announced MicroStrategy’s inclusion in the Nasdaq 100 Index, effective December 23rd. This inclusion is expected to trigger substantial institutional buying as ETFs like QQQ adjust their holdings. Bloomberg analyst James Seyffart projects at least $2.1 billion in share purchases related to this index addition. Consequently, MicroStrategy’s stock price has soared over 490% this year, recently closing at $408.67 with continued pre-market gains.
Inclusion in the Nasdaq 100 represents a significant milestone for MicroStrategy, enhancing liquidity and attracting further investment. Bernstein analysts anticipate continued equity issuance at current elevated prices to fund further Bitcoin acquisitions. They note that MicroStrategy’s leverage, at 18% of its Bitcoin net asset value, remains manageable, allowing for potential debt financing.
Forthcoming changes to accounting rules for digital assets in 2025 could further strengthen MicroStrategy’s financial position. These changes will permit companies to report gains as Bitcoin prices rise, increasing financial transparency. Bernstein analysts suggest this rule change may improve MicroStrategy’s eligibility for inclusion in the S&P 500 Index, despite limited profitability in its software business.
MicroStrategy now controls approximately 2.1% of Bitcoin’s total 21 million coin supply. Despite some investor concerns regarding price volatility and the strategy’s long-term sustainability, Bernstein analysts view it as a high-conviction, long-term investment. With Bitcoin’s recent price surge to $107,000, MicroStrategy’s momentum continues. The company’s Bitcoin strategy remains a closely watched indicator of institutional adoption in the cryptocurrency market.
