MicroStrategy’s Bitcoin Buying Spree Continues Unabated
The business intelligence firm MicroStrategy has made headlines once again with its latest bitcoin purchase, marking the eighth consecutive week of acquiring the digital currency. This latest round of buying has propelled the company’s total bitcoin holdings to a staggering 446,400.
A Significant Investment
MicroStrategy spent approximately $209 million in cash to acquire 2,138 bitcoin between December 23 and 29, at an average price of $97,837. This significant investment has been funded through at-the-market (ATM) share sales, as part of the company’s ambitious “21/21” strategy.
The 21/21 Plan
MicroStrategy’s 21/21 plan aims to raise a whopping $42 billion of capital by selling new shares and fixed-income securities, with the sole purpose of buying more bitcoin. This bold strategy has been instrumental in the company’s rapid accumulation of the digital currency.
Market Impact
Despite MicroStrategy’s aggressive bitcoin buying, the company’s shares took a hit, plummeting 6% in early-afternoon trading on Monday. This decline was largely attributed to the retreat in bitcoin prices, which fell to around $92,500 from highs of $99,000 last week.
Bitcoin Yield Soars
In a filing with the Securities and Exchange Commission (SEC) on Monday, MicroStrategy reported a year-to-date “bitcoin yield” of 74.1%. This metric measures the growth in the number of bitcoins per share owned by the company, highlighting the success of its bitcoin-focused strategy.
A New Era for MicroStrategy
MicroStrategy’s unwavering commitment to bitcoin has transformed the company into a significant player in the digital currency market. As the company continues to accumulate bitcoin, it remains to be seen how this strategy will impact its future performance and the broader market.
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