MicroStrategy once again fell into the “digital gold” buying frenzy. Michael Saylor’s company made one of the largest transactions in its history. From December 2 to December 8, 2024, the company purchased as many as 21,550 bitcoins for a total amount of USD 2.1 billion. Average purchase price amounted to USD 98,783 per BTC, including fees and other costs. Saylor announced that MicroStrategy’s purchases will not end there.
Purchase financing strategy – MicroStrategy on a purchasing wave
The bitcoin purchase was financed through the issuance and sale of 5.42 million shares of the company, which netted the company approximately $2.13 billion. This strategy allowed the company to further increase its exposure to BTC without having to take on debt.
Following this transaction, MicroStrategy holds an impressive 423,650 bitcoins, which collectively cost the company approximately $25.6 billion. Interestingly, the average purchase price for all bitcoin holdings is approximately $60,324 per coin. This is a significantly lower value compared to current market prices, which suggests that the company’s previous investments are already generating significant profits. The company’s latest purchases mean that Michael Saylor’s company now holds more BTC than the Chinese or US government.
Increase in the value of BTC and MSTR shares
This is the fifth consecutive week that Michael Saylor’s company has made significant BTC purchases. During this time, the value of bitcoin increased by over 30%. At the same time, MicroStrategy (MSTR) shares increased by 20%, and their value increased by as much as 480% since the beginning of the year. Such results are widely discussed among analysts – some of them emphasize the risks associated with the company’s heavy dependence on the cryptocurrency exchange rate, while others praise its visionary approach. Saylor has been loudly saying for some time that his company will buy BTC forever, which is confirmed by subsequent reports of MicroStrategy purchases.
Why are MicroStrategy purchases important to the cryptocurrency market?
MicroStrategy’s purchases not only solidify the company’s position as one of the largest corporate holders of bitcoin, but also send a strong signal of confidence in cryptocurrencies as an asset class. Michael Saylor, co-founder and former CEO of the company, has been promoting bitcoin for years as “digital gold” that can protect value in times of rising inflation and economic uncertainty. Although the founder of MicroStrategy has long been one of the few representatives of the business world to speak warmly about BTC , over the last year we have witnessed a real transformation on Wall Street. One of the most ardent opponents of bitcoin and cryptocurrencies, the CEO of BlackRock, started calling BTC digital gold, and at the beginning of January BlackRock released its BTC ETF.
When will MicroStrategy go bitcoin shopping again?
MicroStrategy proves that its long-term bitcoin investing strategy remains consistent despite market fluctuations. The latest purchase of 21,550 BTC not only increases the company’s resources, but also strengthens its position as a leader in corporate cryptocurrency adoption. One thing is certain – the company’s decisions will continue to be closely watched by the market and investors. Will MicroStrategy maintain its position and will its actions encourage other corporations to do the same? We will find out in the coming months.
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