MicroStrategy has continued its aggressive Bitcoin
acquisition strategy, purchasing an additional 2,138 BTC for $209 million,
bringing its total holdings to 446,400 BTC.
This purchase, made on December 29, marked the eighth
consecutive week of Bitcoin purchases, further solidifying the company’s
position as the largest Bitcoin holder among publicly traded companies.
Expanding Bitcoin Holdings
MicroStrategy’s Bitcoin purchases have attracted
attention in the financial world, not just because of their volume but also because of the
consistent strategy behind them.
The company reportedly funded this recent purchase
through its ongoing at-the-market (ATM) program, which allows it to sell shares
to raise funds. MicroStrategy reportedly still has $6.88 billion available
under this program. After the additional 2,138 BTC, Michael Saylor, the Executive Chairman and Co-Founder of MicroStrategy, posted on X: “Disconcerting blue lines on SaylorTracker.com.”
Disconcerting blue lines on https://t.co/Bx3917zMqi. pic.twitter.com/xPl4GTKU3E
— Michael Saylor⚡️ (@saylor) December 29, 2024
The average purchase price for this latest batch of
Bitcoin was $97,837, slightly increasing the company’s overall average to
$62,428 per BTC. MicroStrategy unveiled an ambitious “21/21 Plan this year,
which aims to purchase an additional $42 billion worth of Bitcoin over the next
three years.
The plan includes raising $21 billion through equity
sales and another $21 billion through fixed-income securities. In its latest
filing, the company has sought shareholder approval to expand its equity
issuance, enabling it to fund this ongoing Bitcoin purchasing spree.
This approval would allow MicroStrategy to increase
its authorized shares for both Class A common stock and preferred stock. The
proposed amendments would significantly raise the number of shares available
for issuance, positioning the company to continue its Bitcoin-focused strategy
without financial constraints.
MicroStrategy has acquired 5,262 BTC for ~$561 million at ~$106,662 per bitcoin and has achieved BTC Yield of 47.4% QTD and 73.7% YTD. As of 12/22/2024, we hodl 444,262 $BTC acquired for ~$27.7 billion at ~$62,257 per bitcoin. $MSTR https://t.co/asDGerBV7q
— Michael Saylor⚡️ (@saylor) December 23, 2024
21/21 Plan
MicroStrategy’s 21/21 Plan has already seen remarkable
progress. In December alone, the company purchased more Bitcoins than in most prior months, totaling 42,162 BTC, valued at over $4 billion at current
prices.
As of December 22, MicroStrategy and its subsidiaries
held approximately 444,262 BTC, valued at around $43.5 billion. This stash was acquired at an average price of $62,257
per BTC, meaning the company’s Bitcoin holdings have already appreciated
significantly. The company also outlined its goal to generate an
annual yield of 6% to 10% from its Bitcoin assets between 2025 and 2027.
This article was written by Jared Kirui at www.financemagnates.com.
Source link
