microstrategy s bold bitcoin investment

While many investors watched from the sidelines, MicroStrategy went on another bitcoin buying spree, scooping up 15,350 bitcoins for a staggering $1.5 billion. The company paid an average of $100,386 per bitcoin during its buying frenzy between December 9-15, 2024. Not exactly bargain hunting.

MicroStrategy’s latest bitcoin splurge: 15,350 coins at $100,386 each. Bold move or financial folly?

The purchase brings MicroStrategy’s total bitcoin holdings to 439,000 coins. That’s a serious crypto stash. The company’s average cost basis now sits at $61,725 across all holdings. This acquisition represents MicroStrategy’s sixth purchase in six weeks. These purchases continue despite Michael Saylor being a minority voter in the company he founded. Do the math—they’re betting big on future price appreciation.

Where’d the money come from? Shareholders’ pockets, basically. MicroStrategy funded this latest splurge through its ongoing $21 billion at-the-market share sales program. No discounts offered. The company explicitly earmarked these funds exclusively for bitcoin acquisition. Talk about single-minded focus.

The market seemed to approve—MSTR stock jumped 4% after the announcement, riding bitcoin’s wave toward its all-time high near $106,000. The stock continues trading at a premium to its bitcoin holdings, currently 2.22 times NAV. Earlier premiums reached a whopping 3.4X. For retail investors looking to follow MicroStrategy’s lead, even modest investments of $100 can provide exposure to Bitcoin’s growth potential. Investors clearly think Michael Saylor knows something they don’t.

MicroStrategy’s unusual “BTC Yield” metrics tell an interesting story. The company reports 46.4% QTD and 72.4% YTD BTC Yield—essentially claiming shareholders now own 72.4% more bitcoin per share than at year’s start. Creative accounting or brilliant strategy? You decide.

Founded back in 1989, MicroStrategy supposedly still operates a business intelligence and cloud services operation with some 2,100 employees. But let’s be real—it’s basically become a publicly-traded bitcoin fund with extra steps.

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