MicroStrategy Inc. has purchased 15,400 BTC at an average price of $95,976, worth around $1.5 billion, marking the fourth consecutive week of purchases for the cryptocurrency.
This latest acquisition was announced in a new filing following a record purchase of $5.4 billion in BTC just a week earlier.
The acquisition, completed on December 2nd, further solidified MicroStrategy’s status as the largest corporate holder of Bitcoin.
Since its first Bitcoin purchase in 2020, MicroStrategy has consistently acquired the digital asset, positioning itself as a “Bitcoin Treasury” company. The firm now owns 402,100 BTC or nearly 2% of Bitcoin’s fixed 21 million supply.
Over the years, the firm has invested $21.91 billion in Bitcoin, with an average purchase price of $56,658 per BTC. This strategy has brought the company significant returns, with Bitcoin trading steady at $97,000 today.
MicroStrategy vision and bond strategy
MicroStrategy recently announced its “21/21 Plan” in a company press release, looking to raise $42 billion for Bitcoin purchases over the next three years, allocating $21 billion each for equity and fixed-income offerings. The company has already invested $12 billion in just one month.
Michael Saylor, the chairman of MicroStrategy, publicized the strategy during a recent Bloomberg interview, saying, “To increase leverage, we are engaging in the convertible bond market, adding that future exploration will encompass fixed income and preferred equity instruments.”
However, critics warn that the approach depends on Bitcoin’s price stability and favorable market conditions for issuing shares, making the company vulnerable to market volatility.
Still, the company’s shares soared over 500%, reaching a market cap of $89B, reflecting investor confidence in its unorthodox approach.
The firm continues to challenge traditional corporate strategies by transforming its balance sheet into a Bitcoin investment vehicle.
Whether this aggressive approach proves sustainable will depend on Bitcoin’s future trajectory, but for now, MicroStrategy’s bet on Bitcoin adoption remains unmatched in scope and ambition.
BTC rally led to high trading volumes in the top crypto exchanges and extraordinary gains in some tokens. It is possible companies will begin exploring other cryptocurrencies to hold besides Bitcoin.
