Business intelligence software firm and prominent Bitcoin holder MicroStrategy has announced its acquisition of 1,070 Bitcoin during the final two days of 2024. The company disclosed this purchase on January 6th via a filing with the U.S. Securities and Exchange Commission (SEC).
Key Details of the Purchase
- Timing: December 30–31, 2024
- Investment: ~$101 million in cash
- Average Price: ~$94,004 per Bitcoin
- Funding Source: Proceeds from convertible bond sales
MicroStrategy clarified in its 8-K filing that no additional Bitcoin purchases were made after December 31st.
Bitcoin Holdings Update
As of January 5th, MicroStrategy’s total Bitcoin holdings stand at 447,470 BTC, acquired at an aggregate cost of $27.97 billion** (average price: **$62,503 per Bitcoin). The company reported:
| Metric | 2024 Q4 | 2024 Full Year |
|---|---|---|
| Bitcoin Yield | 48.0% | 74.3% |
Expansion Plans and Financing
On January 3rd, MicroStrategy unveiled a $2 billion perpetual preferred stock offering to strengthen its balance sheet and further grow its Bitcoin portfolio. This aligns with its ambitious "21/21" strategy:
👉 Explore how MicroStrategy leverages capital markets for Bitcoin accumulation
- Goal: Raise $42 billion over three years (via $21 billion equity + $21 billion debt) to purchase more Bitcoin.
- Note: The new offering operates independently from existing financing strategies.
Frequently Asked Questions (FAQs)
1. How does MicroStrategy fund its Bitcoin purchases?
MicroStrategy primarily uses proceeds from convertible bond sales and equity offerings. Recent acquisitions were financed through its convertible bond agreement.
2. What is the "21/21" plan?
It’s a three-year initiative to raise $42 billion ($21 billion each from equity and debt) to scale Bitcoin holdings.
3. Why does MicroStrategy keep buying Bitcoin?
The company views Bitcoin as a long-term store of value and aims to leverage its appreciating potential for shareholder returns.
👉 Learn more about institutional Bitcoin investment strategies
Disclaimer: Market risks exist; invest cautiously. This content is not financial advice. Assess your personal circumstances before making investment decisions.