MicroStrategy Acquires Additional Bitcoin

Business intelligence firm and corporate bitcoin holder MicroStrategy acquired an additional 1,070 BTC for approximately $101 million at an average price of $94,004 per bitcoin between Dec. 30 and Dec. 31, according to an 8-K filing with the Securities and Exchange Commission on Monday.

This acquisition follows the sale of 319,586 MicroStrategy shares during the same timeframe for the same amount. As of Jan. 5, the company reported that approximately $6.77 billion worth of shares remained available for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities capital raise, targeting a total of $42 billion for further bitcoin acquisitions. Last week, the company expanded that 21/21 plan, announcing a potential $2 billion preferred stock offering.

MicroStrategy now holds 447,470 BTC, worth over $44 billion. The total holdings were acquired at an average price of $62,503 per bitcoin, with a total cost around $27.97 billion, including fees and expenses, according to the company’s co-founder and executive chairman, Michael Saylor, who celebrated bitcoin’s recent $100,000 milestone at a party in his Miami home on New Year’s Eve. To put that in perspective, MicroStrategy now holds around 2.1% of bitcoin’s total 21 million supply.

The latest announcement marks the ninth week in a row that MicroStrategy has made significant purchases, following news last Monday of acquiring another 2,138 BTC for roughly $209 million in cash at an average estimated price of $97,837 per coin, including fees and expenses, as well as $561 million worth of bitcoin the week prior.

MicroStrategy has now acquired more than $18 billion worth of bitcoin over the past nine weeks alone, with its $83 billion market cap trading at a significant premium to its bitcoin net asset value. Many investors express reservations about MicroStrategy’s premium to NAV valuation and its equity and debt-funded bitcoin acquisition program in general.

Continued Corporate Treasury Growth Expected in 2025

Analysts at research and brokerage firm Bernstein expect continued growth in corporate treasury adoption in 2025, anticipating inflows of more than $50 billion compared to $24 billion last year. MicroStrategy, which accounted for around 90% of corporate purchases in 2024, is again likely to lead demand, according to the analysts, followed by Bitcoin miners scaling up their capital plans and small/mid-cap corporates looking to emulate Michael Saylor’s model.

“Given MicroStrategy’s 4-year track record and its rising profile (including Nasdaq 100 inclusion), we expect the capital markets flywheel to further accelerate,” Bernstein digital assets lead Gautam Chhugani wrote in a note to clients on Monday.

MicroStrategy uses a key performance indicator it calls “Bitcoin Yield” to measure the percentage change in its bitcoin holdings relative to its diluted shares. The firm’s 2024 Bitcoin Yield was 74.3%, reflecting significant growth in holdings while balancing share dilution amid the company’s strategy of acquiring bitcoin efficiently to benefit shareholders.

MicroStrategy shares closed up 13.2% at $339.66 on Friday, having gained more than 431% over the past year, according to TradingView. The stock is currently up 3.7% in pre-market trading on Monday.