MicroStrategy has purchased an additional 15,350 BTC, investing approximately $1.5 billion. This purchase was completed between December 9 and December 15, 2024, with an average price of $100,386 per BTC, including fees.
This is the first time MicroStrategy has purchased BTC at an average price above $100,000. This strategic move aligns with the company's intention to make BTC a primary treasury reserve asset.
Michael Saylor, Bitcoin Vision
With this acquisition, MicroStrategy's total BTC holdings now amount to 439,000 BTC. This holding was accumulated at a total cost of $27.1 billion, with an average purchase price of $61,725 per BTC. MicroStrategy financed this purchase using proceeds from an equity sales agreement, as disclosed in its Form 8-K report dated December 16, 2024.
The report also highlighted the company's impressive BTC yield, a key performance indicator (KPI) measuring the relative growth of BTC holdings compared to diluted share issuance. From October 1 to December 15, MicroStrategy achieved a quarterly BTC yield of 46.4%. Year-to-date, this figure has surged to 72.4%, emphasizing the strategic success of using equity sales to acquire BTC.
Michael Saylor, the Chairman of MicroStrategy's Board of Directors, is a fervent advocate of BTC adoption. Saylor emphasizes BTC's long-term value as a "digital property asset." Under his leadership, MicroStrategy has transformed its financial strategy, using BTC as a hedge against fiat currency devaluation and inflation.
MicroStrategy's ability to finance large-scale BTC purchases stems from its equity sales agreement. During the same period as the BTC acquisition, the company issued and sold 3,884,712 Class A common shares, generating $1.54 billion in proceeds. This strategy allows MicroStrategy to accumulate BTC without relying on traditional debt financing.
The company's aggressive approach continues to set the benchmark for corporate BTC adoption. Analysts describe MicroStrategy's BTC-centric strategy as bold and pioneering, reflecting a future where BTC is increasingly utilized as a corporate asset.
However, MicroStrategy also has critics, such as economist Peter Schiff.
"As I predicted. Imagine how much further Bitcoin will crash once you stop buying. Then imagine how much further it will crash when your creditors force you to sell." Schiff wrote on X (Twitter).
While some critics question the sustainability of this model, MicroStrategy's increasing BTC yield highlights its success. With BTC's volatility remaining a consideration, MicroStrategy's strategy demonstrates its trust in BTC as a long-term store of value.
