MicroStrategy, a leading Bitcoin holder, disclosed the purchase of 2,530 BTC, increasing its total holdings to 450,000 BTC. This $243 million investment comes amid a sharp drop in Bitcoin price and rising market trading activity.
Massive Investments by MicroStrategy
MicroStrategy registered the purchase of 2,530 BTC for $243 million, boosting their total portfolio to 450,000 BTC. The average purchase price was $95,972 per Bitcoin. This was announced on January 13 through a press release and a filing with the U.S. Securities and Exchange Commission.
Funding and Purchase Strategy
From January 6 to January 12, the company funded purchases using proceeds from share sales under its Sales Agreement. MicroStrategy has spent a total of $28.2 billion to acquire all its BTC at an average price of $62,691 each. In 2024, the company increased its holdings by 258,320 BTC, investing $22.07 billion, achieving a 74.3% yield for the year. The company recently raised $2 billion for additional Bitcoin acquisitions through public offerings of perpetual preferred stock.
Economic Conditions and Market Response
Bitcoin price fell below $91,000 with a 3% decline in 24 hours. Bitcoin trading volume surged by 151%, prompting market activity. Despite the significant Bitcoin investment, MicroStrategy's stock (MSTR) fell over 4%. Investors remain cautious amid strong U.S. jobs data and concerns over inflationary tariffs and the potential for Federal Reserve rate cut delays.
MicroStrategy continues to expand its Bitcoin portfolio actively, despite market fluctuations and overall price declines. The company adheres to its long-term strategy, anticipating future opportunities in the cryptocurrency sector.
