MicroStrategy Expands Bitcoin Holdings with $209M Purchase, Yield Reaches 74% in 2024
MicroStrategy, the business intelligence firm and well-known Bitcoin investor, has purchased an additional 2,138 Bitcoin for $209 million, raising its total holdings to 446,400 BTC, which is currently valued at approximately $41.5 billion. This latest acquisition was announced on Dec. 30, and the purchase took place between Dec. 23 and Dec. 29. The company bought the Bitcoin at an average price of $97,837 per BTC.
Key Highlights:
- New Purchase: 2,138 BTC acquired for $209M between Dec. 23–29.
- Total Holdings: MicroStrategy’s Bitcoin holdings now total 446,400 BTC, valued at $41.5 billion.
- Funding Source: The purchase was funded by selling 592,987 shares during the same week.
Bitcoin Yield Soars to 74% in 2024
MicroStrategy’s Bitcoin yield, a key performance metric for its crypto investments, reached 74.1% year-to-date as of Dec. 30. This is a significant jump from the 47.8% yield reported between Oct. 1 and Dec. 29, reflecting the company’s strong returns on its Bitcoin holdings.
Key Performance Metrics:
- Year-to-Date Yield: 74.1% as of Dec. 30.
- Recent Quarterly Yield: 47.8% from Oct. 1 to Dec. 29.
Ongoing Bitcoin Purchases
The latest purchase marks the eighth consecutive week MicroStrategy has bought Bitcoin. Since Oct. 31, the firm has been acquiring BTC on a weekly basis, adding 194,180 BTC to its portfolio. However, the size of the weekly purchases has slowed significantly from November, when the company acquired over 100,000 BTC in that month alone.
Key Acquisition Facts:
- Weekly Purchases: MicroStrategy has bought Bitcoin every week since Oct. 31.
- Total Acquired Since Oct. 31: 194,180 BTC added to its holdings.
- Slower Pace in Recent Weeks: Weekly Bitcoin purchases have slowed compared to November’s record buy.
Future Plans for Additional Bitcoin Purchases
MicroStrategy has made clear its intention to continue expanding its Bitcoin holdings, regardless of market price. Executive Chairman Michael Saylor previously stated that the firm would continue buying Bitcoin “at any price,” even if it reaches $1 million per coin. This unwavering commitment to Bitcoin is part of the company’s long-term strategy.
In order to fund future Bitcoin purchases, MicroStrategy is seeking approval from the U.S. Securities and Exchange Commission (SEC) to issue additional shares. On Dec. 23, the company filed to increase the number of authorized shares for its Class A common stock and preferred stock. Specifically, it wants to raise the authorized Class A stock from 330 million to 10.33 billion shares and increase the authorized preferred stock from 5 million to over 1 billion shares. This move would give the company more flexibility to raise capital when necessary for further Bitcoin acquisitions.
- Share Increase Proposal: Seeking SEC approval to increase authorized shares for both common and preferred stock.
- New Authorization Amounts: Class A common stock from 330 million to 10.33 billion; preferred stock from 5 million to 1 billion+.
MicroStrategy’s continued investment in Bitcoin and its plans to issue more shares reflect its ongoing confidence in the digital currency, aiming to capitalize on its potential long-term value growth.
