MicroStrategy Expands Bitcoin Holdings by $1.5 Billion
MicroStrategy, a business intelligence firm and major corporate holder of Bitcoin, has purchased an additional 15,350 BTC for approximately $1.5 billion, paying an average of $100,386 per coin.
This acquisition, made between December 9 and December 15, follows the sale of 3.88 million shares, raising funds for further Bitcoin purchases. According to an SEC filing, the company plans to raise up to $42 billion in total capital through a combination of equity and fixed-income securities to continue expanding its Bitcoin holdings.
Currently, MicroStrategy holds about 439,000 BTC, valued at over $45 billion. Its Bitcoin purchases have an average price of $61,725 per coin, totaling roughly $27.1 billion, including fees. This represents around 2.1% of Bitcoin’s total supply. In just the past six weeks, MicroStrategy has added approximately $17.5 billion in Bitcoin, accounting for 39% of its total position.
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Despite concerns from investors about the company’s strategy of funding these purchases through debt and equity, analysts from Bernstein believe that this trend could continue, especially if Bitcoin remains around the $100,000 mark. They note that MicroStrategy has room to issue more debt, given its manageable leverage levels.
The firm tracks its Bitcoin holdings relative to its shares using a metric called “Bitcoin Yield.” As of December 15, the company reported a 72.4% Bitcoin Yield for the year, reflecting significant growth in its holdings while managing share dilution, aligning with its strategy to acquire Bitcoin in a way that benefits shareholders.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
