MicroStrategy adds another 1,070 Bitcoin for $101 million

Michael Saylor's MicroStrategy added another 1,070 bitcoin to its holdings, spending around $101 million at an average price of just over $94,000 per btc.

The purchases by the business intelligence company and largest corporate owner of btc were made between December 30 and 31, it was revealed in a 8-K presentation with the Securities and Exchange Commission on Monday.

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MicroStrategy acquired 1,070 btc for ~$101 million at ~$94,004 per bitcoin and achieved a btc return of 48.0% in Q4 2024 and 74.3% in FY 2024. As of 01/05/2025, we have 447,470 <a target="_blank" href="https://twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btc acquired for ~$27.97 billion at ~$62,503 per bitcoin. <a target="_blank" href="https://twitter.com/search?q=%24MSTR&src=ctag&ref_src=twsrc%5Etfw”>$MSTR https://t.co/CkLrLSkB5M

—Michael Saylor (@saylor) <a target="_blank" href="https://twitter.com/saylor/status/1876253178100117907?ref_src=twsrc%5Etfw”>January 6, 2025

The acquisition came on the heels of the sale of an additional 319,586 MicroStrategy shares, which occurred at the same time and brought in the same amount. The company reported that about $6.77 billion in shares remained available for sale as of Jan. 5.

This is part of the company's proposed $21 billion stock offering and $21 billion in fixed income securities financing, targeting a total of $42 billion for additional bitcoin purchases. Last week, MicroStrategy expanded its 21/21 plan, revealing a potential $2 billion preferred stock offering.

MicroStrategy, which currently holds 447,470 bitcoin, worth over $44 billion, is the largest corporate holder of btc. To provide context, MicroStrategy currently holds approximately 2.1% of the total 21 million bitcoin supply.

The company acquired bitcoin at an average price of $62,503 per bitcoin, resulting in a total investment of approximately $27.97 billion. Michael Saylor, co-founder and CEO of MicroStrategy, marked the recent $100,000 bitcoin milestone with a festive celebration at his Miami home on New Year's Eve.

MicroStrategy's latest statement marks the ninth consecutive week it has purchased bitcoin. Last Monday, the company added another 2,138 btc for approximately $209 million in cash. The estimated average price per coin, including fees and expenses, was $97,837. Additionally, the previous week, MicroStrategy acquired bitcoin worth $561 million.

In just the last nine weeks, the company has accumulated more than $18 billion worth of bitcoin, and its $83 billion market cap trades at a substantial premium to its bitcoin net asset value. However, some investors are cautious about the company's premium to NAV valuation and its approach to acquiring bitcoin through equity and debt financing.

Bernstein sees greater growth in corporate treasury this year

Bernstein analysts predict continued growth in the company's corporate treasury adoption in 2025. They also expect inflows to exceed $50 billion this year, compared to $24 billion the previous year.

MicroStrategy, which accounted for around 90% of corporate acquisitions in 2024, is expected to continue driving demand, analysts say. Additionally, bitcoin miners are expanding their capital plans, while small and mid-cap companies are looking to follow Michael Saylor's approach.

“Given MicroStrategy's 4-year track record and growing profile (including listing on the Nasdaq 100), we expect the capital markets flywheel to accelerate further,” Bernstein's digital assets leader told clients on Monday. , Gautam Chhugani.

MicroStrategy uses a key performance indicator known as “bitcoin yield” to evaluate the percentage change in its bitcoin holdings relative to its diluted shares. In 2024, MicroStrategy's bitcoin performance reached 74.3%. This indicates substantial growth in holdings managing share dilution as part of their strategy to acquire bitcoin and enhance shareholder value.

On Friday, MicroStrategy shares closed 13.2% higher at $339.66, marking a gain of more than 431% over the past year, according to TradingView. Additionally, the stock rose 3.7% in premarket trading on Monday.

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