Bitcoin reached an all-time high (ATH) of $107,162 on December 16, 2024. The rally has sparked excitement, with institutional interest growing. MicroStrategy is among the leading companies in this revolution being the largest corporate holder of BTC.
Michael Saylor, the company’s chairman, equated it to Manhattan real estate, to which he referred Bitcoin as “cyber Manhattan” when speaking to CNBC Money Movers on the 16th of December.
He stated that for him Bitcoin remained a sound investment regardless of its current cost.
Michael Saylor’s Bitcoin View
During the interview, Saylor describes Bitcoin as having a long-term focus. He compared it to Manhattan real estate, saying that even if prices go higher, it is still profitable to buy.
“Every year, you pay a little more, but it’s always a good investment to invest in the economic capital of the free world,” Saylor said.
MicroStrategy has accumulated 439,000 BTC, worth over $45 billion since 2020. The company’s average purchase price for its BTC holdings is $61,725 per coin, totaling $27.1 billion in investment.
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This represents about 2.1% of Bitcoin’s total supply.
MicroStrategy’s bold BTC purchases continued in December 2024. From December 9 to 15, the company bought 15,350 BTC for about $1.5 billion according to SEC 8-K Filing.
The average purchase price was $100,386 per coin. This comes after another large purchase of 21,550 BTC in the previous week, worth around $2.1 billion.
To finance these acquisitions, MicroStrategy sold 3.88 million shares for $1.5 billion. The company plans to raise $42 billion through further stock and bond offerings to continue expanding its Bitcoin holdings.
As of December 15, MicroStrategy still has $7.65 billion in shares available for sale.
MicroStrategy is also expected to be included in the Nasdaq-100 index on December 23, 2024. This is anticipated to help in enhancing the liquidity of the stock.
The business intelligence company currently has a market cap of around $92 billion. This growth has been propelled by MicroStrategy’s Bitcoin strategy.
Institutional Adoption Grows
BTC reached a new high 0f over $107,000 recently while MicroStrategy continues to buy Bitcoins, which shows that institutions are coming into the market. MicroStrategy’s on-going strategy highlights the position of Bitcoin as one of the core digital assets.
Institutions are increasingly viewing BTC as a strategic reserve asset. Semler Scientific and Riot Platforms are among the latest to bolster their Bitcoin holdings, signaling growing institutional confidence in the digital asset despite its high valuations.
Semler Scientific has acquired 211 BTC for $21.5 million, bringing its total Bitcoin stash to 2,084 BTC, valued at $168.6 million.
Since adopting Bitcoin as a reserve asset in May, Semler has seen impressive returns, with a 67% gain this quarter and nearly 93% growth overall.
Meanwhile, Riot Platforms has used proceeds from a $594 million convertible bond offering to purchase 667 BTC, now holding 17,429 BTC worth around $1.8 billion.
Riot’s mining operations, combined with its Bitcoin holdings, have led to a significant 36.7% BTC yield per share for the quarter and 37.2% year-to-date, further solidifying its position as a top player in both Bitcoin mining and accumulation.
