Michaela Alvez
MicroStrategy has bought a whopping 21,550 BTC, adding to their already massive holdings, with a purchase made last week at an average price of $98,783 per Bitcoin.
According to its official filing, the business intelligence company’s recent $2.1 billion purchase brings its total Bitcoin holdings to 423,650 BTC, valued at approximately $42 billion.
MicroStrategy’s recent acquisition, made between December 2 and December 8, marks the company’s fifth consecutive week of expanding its Bitcoin investments, following its earlier purchase of 15,400 BTC for $1.5 billion at an average price of $95,976 per coin.
To finance its latest purchase, MicroStrategy sold around 5.4 million shares of its common stock and utilized proceeds from a larger $21 billion equity offering approved in October 2024.
The firm has outlined plans to raise $42 billion over the next three years, with the capital to be allocated equally between equity and fixed-income securities. Of this amount, $9.19 billion in shares remains available for future issuance.
In a post on X, MicroStrategy co-founder and executive chairman Michael Saylor revealed that the company’s Bitcoin holdings were acquired at an average price of $60,324 per BTC, amounting to a total of $25.6 billion, including fees. He also said that as of December 9, MicroStrategy’s Bitcoin yield had reached 68.7% year-to-date.
Economist Peter Schiff reacted to Saylor’s recent post, arguing that without the company’s leveraged Bitcoin purchases, the cryptocurrency’s price would likely be significantly lower. “Once you finish buying the price will tank. Then when your creditors force you to sell it will crash,” Schiff wrote.
Schiff, a vocal Bitcoin critic, recently expressed concerns about the proposed Bitcoin Reserve bill, warning that if the U.S. government were to purchase one million BTC, it could trigger a market crash. He argued that such a scenario would likely force the government to print more dollars just to buy additional Bitcoin and stabilize its value.
MicroStrategy: Bitcoin Strategy Trendsetter
MicroStrategy has become a prominent figure worldwide due to its massive Bitcoin investment. The firm began buying Bitcoin in 2020 as part of a strategy to diversify cash reserves and hedge against inflation.
Earlier this month, Saylor continued his strong advocacy for Bitcoin by urging Microsoft’s board of directors to integrate it into the company’s financial strategy. Saylor emphasized the benefits of incorporating Bitcoin as a reserve asset, suggesting that it could enhance the company’s long-term financial stability and protect against inflation.
Several companies, including Grayscale, Coinbase, and Marathon Digital Holdings, have followed MicroStrategy’s lead by adding Bitcoin to their balance sheets, with Tron founder Justin Sun even hinting at the possibility of a similar move.
Read More
- MicroStrategy Bitcoin Bet: Another $1.5 Billion Invested
- MicroStrategy High-Stakes Bitcoin Bet: The “Infinite Money Glitch” Could Fail-Study
- MicroStrategy Bitcoin Investment Surges to $8.4B in Unrealized Profits
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
