MicroStrategy Increases Reserves, Acquires 21.550 Bitcoins for $2,1 Billion

• MicroStrategy invests $2,1 billion in 21.550 bitcoins
• Corporate reserves total 423.650 bitcoins
• Shares appreciated by 470% during 2024

MicroStrategy, known for its aggressive strategy of acquisition cryptocurrency exchange, announced another significant move in the market. The company acquired 21.550 bitcoins between December 2 and 8, 2024, totaling an investment of US$ 2,1 billion. According to the company, the average cost per unit was approximately US$ 98.783, considering fees and expenses.

MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per #bitcoin and has achieved BTC Yield of 43.2% QTD and 68.7% YTD. As of 12/8/2024, we held 423,650 $ BTC acquired for ~$25.6 billion at ~$60,324 per bitcoin. $ MSTR https://t.co/8r7bFqMFof

- Michael Saylor⚡️ (@saylor) December 9, 2024

To fund this acquisition, MicroStrategy issued and sold 5.418.449 Class A shares, raising a net $2,13 billion. This brought the company’s total bitcoin holdings to 423.650 units, acquired for a cumulative cost of $25,6 billion. The average price paid by the company across all of its acquisitions is approximately $60.324 per bitcoin.

The strategy of accumulating bitcoin has been a hallmark of the management of Michael Saylor, chairman of the board of MicroStrategy. Since 2020, the company has used equity issuances and debt raising to increase its reserves of the main cryptocurrency on the market, consolidating itself as the largest corporate holder of bitcoin in the world. This approach reflects the company's confidence in the asset's potential as a long-term store of value.

In addition to the recent purchase, MicroStrategy announced plans to raise up to $42 billion over the next three years through equity offerings and debt issuances. These funds will be earmarked for further bitcoin acquisitions, reinforcing the company’s commitment to its long-term strategy in the cryptocurrency market.

The results of this approach have been evident in the company's stock performance. In 2024, MicroStrategy shares rose by approximately 470%, reflecting the direct correlation between the appreciation of bitcoin and the company's market capitalization. The “BTC Yield”, a metric that measures the relationship between bitcoins held and the number of diluted shares, grew by 68,7% year-to-date.

At the time of publication of this article, Bitcoin was trading at US$97.519,45, down 2.5% in the last 24 hours.

MicroStrategy’s move is seen as an example for other companies considering adopting bitcoin as part of their asset diversification strategy. As confidence in the cryptocurrency grows, moves like this could encourage more corporations to explore bitcoin’s potential as a strategic asset on their balance sheets.