Key Takeaways:
- MicroStrategy acquired 2,530 BTC for $243M, increasing its holdings to 450,000 BTC worth $28.2B.
- The purchase aligns with its strategy of leveraging bitcoin as a treasury asset since 2020.
- Recent equity sales generated $243M, reflecting its financial strategy amid growing institutional bitcoin adoption.
MicroStrategy has announced the purchase of 2,530 bitcoins (BTC) for approximately $243 million at an average price of $95,972 per BTC, according to a company statement on January 13, 2025.
Notably, the acquisition brings the firm’s total bitcoin holdings to 450,000 BTC, valued at around $28.2 billion, with an average acquisition cost of $62,691 per BTC.
Accordingly, the move underscores MicroStrategy’s ongoing commitment to its bitcoin investment strategy, which has been central to its corporate treasury management since 2020. Notedly, the company’s Year-to-Date (YTD) bitcoin yield stands at 0.32%, reflecting its efforts to leverage BTC as a strategic asset.
MicroStrategy: A Bold Move Amid Market Recovery
Between January 6 and January 12, 2025, the Company sold 710,425 shares under its Sales Agreement, according to an SEC filing. It is noteworthy that the sale generated approximately $243 million in net proceeds, excluding sales commissions, marking a significant capital-raising activity within a week.
As of January 12, 2025, the Company retained authorization to issue and sell shares worth approximately $6.53 billion under the same agreement. This indicates a considerable remaining capacity for further equity financing if needed.
The sale aligns with the Company’s broader financial strategy, leveraging equity markets to secure substantial funding. Today’s purchase marks the company’s tenth consecutive weekly buy after splashing over $100 million last week to procure 1,070 bitcoins [its first purchase in 2025].
MicroStrategy: Leading Corporate BTC Holder Driving Institutional Adoption
MicroStrategy’s total bitcoin holdings make it one of the largest corporate holders of the cryptocurrency. The company first adopted bitcoin as its primary reserve asset in August 2020, citing concerns over inflation and a depreciating U.S. dollar.
While the firm has faced scrutiny over aggressive bitcoin accumulation, Saylor has consistently defended the strategy.
Bitcoin’s growing institutional adoption continues to influence corporate strategies. However, critics argue that such concentrated investments expose firms to significant financial risks, particularly during volatile market cycles.
As the firm’s holdings grow, industry observers remain focused on its role in influencing market sentiment and institutional interest in bitcoin. With this latest acquisition, MicroStrategy reaffirms its leadership in bridging traditional finance and digital assets.