MicroStrategy Doubles Down on Bitcoin, Buys 10,107 BTC Worth $1.1 Billion

Coin WorldMonday, Jan 27, 2025 3:57 pm ET

1min read

MicroStrategy, the software intelligence giant, has once again demonstrated its unwavering commitment to Bitcoin by acquiring an additional 10,107 BTC between January 21 and January 26. This purchase, valued at approximately $1.1 billion, was made at an average price of $105,596 per coin. The company's latest 8-K filing with the Securities and Exchange Commission details this development.

This acquisition aligns with MicroStrategy's broader strategy to sell up to $4.35 billion in equity and an equal amount in fixed-income securities. The proceeds from these sales will primarily be used to purchase more Bitcoin. This dual strategy of share dilution and strategic accumulation reflects the company's confidence in Bitcoin's long-term value.

With this latest purchase, MicroStrategy's Bitcoin holdings now stand at an impressive 471,107 BTC, valued at over $46 billion. The company's cumulative acquisition cost, including fees and expenses, is about $30.4 billion, translating to an average price of $64,511 per Bitcoin. This positions MicroStrategy as the largest corporate Bitcoin holder, with over 2.2% of Bitcoin's total 21 million supply.

To measure the performance of its Bitcoin strategy, MicroStrategy employs a proprietary metric called Bitcoin Yield. This metric measures the percentage change in Bitcoin holdings relative to the company's diluted shares.

Michael Saylor, MicroStrategy's co-founder and executive chairman, has been vocal about the company's Bitcoin plans. For 11 consecutive weeks, he has posted hints about the company's Bitcoin purchases. On January 19, he shared a Bitcoin chart, signaling that the firm planned to buy more soon. A few days earlier, the company bought 2,350 BTC worth $243 million, pushing its Bitcoin stash to 450,000 BTC valued at a whopping $47.3 billion.

Saylor's advocacy for Bitcoin extends beyond his company. He has urged Microsoft's CEO, Satya Nadella, and its board to adopt Bitcoin as a treasury asset. He boldly predicted that doing so could drive the company's assets to skyrocket to $5 trillion. Recently, Saylor's bold stance highlights his belief in Bitcoin as a revolutionary financing tool, unmatched in preserving value and driving growth

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