MicroStrategy Announces New BTC Purchase as It Continues to Boost Its Bitcoin Holdings
Global software company MicroStrategy (MSTR) continues to increase its total assets with a new Bitcoin purchase made in late December 2024. The company announced that it bought 1,070 BTC at an average price of approximately $94,004 between December 30-31, with the total transaction costing $101 million. With this latest acquisition, MicroStrategy's total Bitcoin holdings have reached 447,470 BTC, with a current market value estimated at about $44.3 billion.
The company financed its new purchase with proceeds from the sale of 319,586 shares conducted during the same period. MicroStrategy's average cost per Bitcoin stands at $62,503. Additionally, the company reported a 74% return from its Bitcoin investments throughout 2024, with a 48% return realized during the October-December period.
"21/21 Plan" accelerates Bitcoin investments MicroStrategy's recent acquisitions were made as part of the "21/21 Plan" announced in October. The plan includes targets to raise $21 billion through stock issuances and $21 billion via fixed-income instruments over the next three years. Under this plan, the company has so far acquired a total of 195,250 BTC, reaching approximately 45% of its target. The total value of these assets is around $19.3 billion under current market conditions.
Focused on Bitcoin under Michael Saylor's guidance, the company also announced plans to sell up to $2 billion in unlimited preferred stock to strengthen its balance sheet and finance new acquisitions. In this regard, the company filed with the U.S. Securities and Exchange Commission (SEC) in December to increase the number of authorized shares.
MicroStrategy's Bitcoin strategy is expanding MicroStrategy's Bitcoin investments are part of a strategy the company has pursued since 2020. By acquiring Bitcoin for nine consecutive weeks, the company further accelerated this strategy by the end of 2024. These investments demonstrate the company's strong position in the Bitcoin market and its view of cryptocurrencies as a long-term store of value. It is noted that approximately 55.9% of MicroStrategy's total Bitcoin assets have market dominance, and this strategy continues to resonate widely in the crypto world.