MicroStrategy, the world's largest corporate holder of Bitcoin, announced its purchase of 15,400 BTC for approximately $1.5 billion. The company's total Bitcoin holdings now stand at 402,100 BTC.
Funding the Purchase
According to a filing with the U.S. Securities and Exchange Commission, MicroStrategy entered into a sales agreement to sell up to $21 billion in stock. Between November 25 and December 1, 2024, the company sold approximately $1.48 billion worth of shares, using the proceeds to acquire the latest batch of Bitcoin. The company plans to continue its stock sale strategy to raise a total of $42 billion over the next three years, with a significant portion allocated for further Bitcoin acquisitions.
A Continued Commitment to Bitcoin
This purchase marks MicroStrategy’s fourth consecutive week of Bitcoin acquisitions. In the previous week, the company bought 55,500 BTC for about $5.4 billion, at an average price of $97,862 per coin. MicroStrategy’s cumulative Bitcoin purchases now exceed $23.4 billion, with an average price of $58,263 per BTC. This ongoing Bitcoin accumulation is part of the company's long-term strategy to increase its Bitcoin holdings through substantial investments over the next few years.
Competing with Other Crypto Holdings
With 402,100 BTC, MicroStrategy is the largest corporate Bitcoin holder by a significant margin. While Marathon Digital, the second-largest corporate holder, possesses around 33,875 BTC, MicroStrategy outpaces its competitors. Marathon has announced plans to expand its reserves, but the company is still far behind MicroStrategy. Following the news, shares of MicroStrategy (MSTR) fell 1.85% on Monday and are currently priced at $380.30.
MicroStrategy's latest acquisitions come as Bitcoin experiences price consolidation. Bitcoin briefly reached the $100,000 mark earlier this year but has since pulled back.
