Catenaa, Tuesday, December 10, 2024-Business intelligence firm MicroStrategy announced Monday that it purchased 21,550 bitcoin for approximately $2.1 billion in cash between December 2 and December 8, 2024.
The acquisition, made at an average price of $98,783 per coin, represents one of the company’s largest investments in the cryptocurrency to date.
The purchase was funded through the issuance and sale of 5.4 million company shares, which netted $2.13 billion, according to a filing with the U.S. Securities and Exchange Commission. This acquisition brings MicroStrategy’s total bitcoin holdings to 423,650, purchased at an average cost of approximately $60,324 per coin. The company’s aggregate bitcoin investment now totals roughly $25.6 billion.
This marks the fifth consecutive week of substantial bitcoin purchases by MicroStrategy, coinciding with a 40% surge in Bitcoin’s price. Over the same period, the company’s stock (ticker MSTR) has risen 20%, contributing to its impressive 480% year-to-date increase.
MicroStrategy’s bitcoin acquisition strategy, led by co-founder and executive chairman Michael Saylor, has polarized market analysts. While some see it as a visionary move in corporate treasury management, others question the sustainability of tying the company’s value so closely to bitcoin’s volatile price.
MicroStrategy remains the largest corporate holder of bitcoin, underscoring its role as a prominent advocate for institutional adoption of the cryptocurrency.
