2024-12-24 14:30 |
The acquisition, which took place shortly before Christmas, is the company’s third Bitcoin purchase this month alone and comes amid speculation that buying activity may slow in January due to MicroStrategy’s recent inclusion in the NASDAQ-100 index.
Persistent BTC AccumulationMichael Saylor, the company’s Executive Chairman and co-founder, disclosed in a post on social media that the 5,262 BTC were bought at an average price of about $106,662 per coin. This latest move brings MicroStrategy’s total Bitcoin holdings to 444,262 BTC, acquired at a combined cost of $27.7 billion. The firm’s overall average purchase price now stands at approximately $62,257 per BTC.
Source: X
Although Bitcoin has been trading near historic highs throughout December, the Virginia-based enterprise software provider has shown little hesitation in increasing its position. Last week, MicroStrategy revealed a separate purchase worth $1.5 billion at an average cost of $100,386 per BTC. In total, the company has now made three major Bitcoin acquisitions in December.
Saylor underlined the strong returns generated by this investment strategy, stating that MicroStrategy achieved a 47.4% yield on its Bitcoin holdings quarter-to-date (QTD) and a 73.7% year-to-date (YTD) return. However, the price of Bitcoin has since experienced a pullback of around 11-12%, and MicroStrategy’s stock has also reflected this volatility, dipping by over 15% from its recent peak.
NASDAQ-100 Inclusion and Rumored January PauseA significant development for MicroStrategy occurred this month when it was added to the NASDAQ-100, an elite index comprising the top 100 non-financial companies listed on the NASDAQ stock exchange. While this listing may attract new institutional and retail shareholders, it has also fueled rumors that MicroStrategy could pause Bitcoin purchases in January. Some market observers suggest the company might implement a self-imposed blackout period ahead of upcoming quarterly earnings reports. During such times, many publicly listed firms avoid major strategic moves that could be interpreted as insider-driven activities.
Despite such speculation, there is no official confirmation from MicroStrategy regarding a formal pause in its acquisition strategy. Saylor himself has repeatedly emphasized his long-term bullish outlook on Bitcoin, and the firm has continued to use innovative financing methods—such as convertible bond offerings and equity sales—to fund purchases of the cryptocurrency.
Potential Risks and RewardsMicroStrategy’s BTC holdings now equate to approximately 2.2% of the global Bitcoin supply. Critics worry that one company possessing such a large stake presents both systemic and reputational risks. Should a sharp decline in Bitcoin’s price coincide with a significant drop in MicroStrategy’s stock, the company could be forced to liquidate a portion of its holdings to maintain sufficient collateral for its loans. Some fear such a scenario could trigger a cascade of selling pressure in the broader Bitcoin market.
Proponents, however, see Michael Saylor’s actions as a bold bet on Bitcoin’s future dominance. Many point to the substantial appreciation of BTC over the past year as a testament to his conviction. While MicroStrategy’s share price has been volatile—down over 15% in the past week—it remains markedly higher on a year-over-year basis, suggesting that the market has recognized the potential upside of the company’s strategy.
For now, the possibility of a purchasing pause has not dampened Saylor’s determination. Despite the short-term fluctuations in both Bitcoin’s value and MicroStrategy’s stock performance, the company’s steady buying spree underscores its belief that Bitcoin will continue to be an essential store of value and an attractive asset for corporate treasuries.
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