MicroStrategy has bought 15,350 BTC for about $1.5 billion from December 9 to December 15, 2024. This purchase is significant because it’s the first time the company has bought Bitcoin for more than $100,000 each. MicroStrategy now holds a total of 439,000 BTC, worth about $27.1 billion, after this recent acquisition.
The company’s plan, guided by Executive Chairman Michael Saylor, focuses on Bitcoin as a key treasury asset, showing a strong belief in its long-term value as protection against inflation and currency loss.
MicroStrategy raised $1.54 billion by selling 3.88 million shares of its Class A common stock to pay for this recent purchase, steering clear of traditional debt and loans. The company has successfully used this equity-based method, showing a quarterly Bitcoin yield of 46.4% and a year-to-date yield of 72.4%.
Saylor supports Bitcoin as a valuable digital asset and sees MicroStrategy as a pioneer in corporate Bitcoin investment, encouraging other companies to explore similar approaches.
Some people, like economist Peter Schiff, criticize this bold strategy. They point out the risks of depending too much on Bitcoin, especially its ups and downs, and what might happen if MicroStrategy stops buying or sells its assets.
Even with these worries, MicroStrategy’s approach seems to be working well, as shown by its increasing Bitcoin yield, highlighting the success of its long-term plan. The company’s focus on Bitcoin as a protection against economic issues highlights its leading position in using cryptocurrency, strengthening its reputation in finance.
