Crypto News (30 December 2024) – MicroStrategy’s Bitcoin Investments Surge as Company Plans More Acquisitions
Crypto News (30 December 2024) – MicroStrategy, a prominent business intelligence firm and Bitcoin investor, has significantly increased its Bitcoin holdings by acquiring an additional 2,138 BTC for $209 million. The purchase, made between December 23 and December 29, raises the company’s total Bitcoin stash, reinforcing its commitment to the cryptocurrency. The company announced the acquisition on December 30, revealing that it used cash reserves to make the purchase at an average price of around $97,837 per Bitcoin.
MicroStrategy’s Bitcoin Holdings Surge
With this latest acquisition, MicroStrategy now holds a total of over $5.4 billion worth of Bitcoin. The firm continues its strategic investment in the cryptocurrency, further solidifying its position as one of the largest corporate Bitcoin holders. The most recent purchase marks the eighth consecutive week the company has bought Bitcoin, with 194,180 BTC added to its reserves since October 31. However, the pace of purchases has slowed significantly since November, when the company acquired over 100,000 BTC in a single month.
MicroStrategy Funds Bitcoin Purchase Through Stock Sale
In order to fund the $209 million Bitcoin acquisition, MicroStrategy sold 592,987 shares of its stock during the same week. This move is part of the company’s broader strategy to maintain liquidity while increasing its cryptocurrency holdings. The decision to sell shares reflects MicroStrategy’s ongoing dedication to building its Bitcoin portfolio, despite the inherent volatility in the cryptocurrency market.
Bitcoin Yield Reaches 74% Year-to-Date
MicroStrategy reported a remarkable 74.1% Bitcoin yield year-to-date as of December 30. This performance metric, which tracks the company’s returns from Bitcoin investments, reflects a strong gain over the course of 2024. From October 1 to December 29, the yield stood at 47.8%, highlighting a solid upward trend despite market fluctuations.
The company’s Bitcoin yield remains an important indicator of its success in the cryptocurrency space, particularly given its large-scale investment in the asset. MicroStrategy continues to hold its Bitcoin position as a strategic asset, aiming for long-term gains rather than short-term profits.
MicroStrategy CEO Michael Saylor’s Commitment to Bitcoin
Michael Saylor, co-founder and executive chairman of MicroStrategy, has long been an outspoken advocate for Bitcoin. He reiterated the company’s commitment to buying more Bitcoin regardless of the price, emphasizing that MicroStrategy will continue to make purchases even if Bitcoin’s price reaches $1 million. This unwavering support for Bitcoin has been a cornerstone of MicroStrategy’s strategy, making the firm one of the most visible and vocal corporate supporters of the cryptocurrency.
Future Plans: MicroStrategy Seeks to Issue More Shares for Bitcoin Purchases
In addition to its ongoing Bitcoin purchases, MicroStrategy is looking to expand its financial flexibility by increasing its authorized stock. In a December 23 filing with the U.S. Securities and Exchange Commission (SEC), the company proposed raising the number of authorized shares for its Class A common stock and preferred stock. This would allow the company to issue more shares as needed to fund future Bitcoin acquisitions.
MicroStrategy plans to increase the authorized shares of its Class A common stock from 330 million to a staggering 10.33 billion. Additionally, it seeks to raise the number of preferred stock from 5 million to more than 1 billion. This move is seen as a strategic step to ensure that the company has the necessary capital to continue its Bitcoin purchases and expand its holdings further.
MicroStrategy’s Bitcoin Strategy: A Long-Term Vision
MicroStrategy’s commitment to Bitcoin reflects a broader trend of institutional adoption of digital assets. The company’s continuous accumulation of Bitcoin has made it a key player in the cryptocurrency space, influencing market dynamics and setting a precedent for other corporations considering similar investments.
While the price of Bitcoin remains volatile, MicroStrategy’s strategy of buying Bitcoin at any price underscores its long-term vision for the asset. The company has made it clear that it sees Bitcoin as a critical part of its future growth and financial strategy, even as it explores new ways to fund its acquisitions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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