Key Takeaways
- This acquisition brings the company’s total Bitcoin holdings to 438,650 BTC, valued at approximately $45.6 billion
- As per the company, it has spent a total of $27.1 billion on Bitcoin purchases at an average price of $61,725 per Bitcoin.
The largest corporate Bitcoin Holder, MicroStrategy, has announced a new acquisition of 15,000 BTC. The purchase was completed between December 9 and December 15 at an average price of $100,386 per Bitcoin, using proceeds from a convertible notes sales agreement. This acquisition brings the company’s total Bitcoin holdings to 438,650 BTC, valued at approximately $45.6 billion based on current market prices.
As per the company, it has spent a total of $27.1 billion on Bitcoin purchases at an average price of $61,725 per Bitcoin. The announcement came just days after it was revealed that the company would be included in the Nasdaq-100 index, a widely followed benchmark comprising top companies in the technology and innovation sectors.
The Nasdaq-100 inclusion is set to take effect on December 23. The index is rebalanced annually and requires companies to meet specific criteria related to market capitalization, free-floating shares, and liquidity. MicroStrategy’s addition to the index reflects its unique position as a prominent corporate participant in the cryptocurrency space, serving as a bridge between traditional financial markets and digital assets.
MicroStrategy’s Bitcoin acquisition strategy has been spearheaded by its founder and executive chairman, Michael Saylor, who has consistently advocated for Bitcoin as a long-term store of value. The company has been regularly increasing its crypto holdings, acquiring 171,430 BTC in the past five weeks alone, totaling $15.61 billion in investments during this period.
The latest purchases were funded through MicroStrategy’s ongoing at-the-market (ATM) share sale program, which still has $7 billion in available funds. The company has also issued $3 billion in convertible notes as part of its broader strategy, leaving $18 billion available for potential future funding.
The announcement of the Bitcoin acquisition coincides with changes in accounting standards for digital assets. Starting in fiscal years after December 15, 2024, companies will be allowed to report gains and impairments on digital assets using fair value accounting. Under current rules, companies can only record losses if the asset’s value drops below the purchase price but cannot report gains if the value rises. These changes, adopted by the Financial Accounting Standards Board (FASB), are expected to make it easier for corporations to hold and report cryptocurrency assets.
MicroStrategy’s announcement also follows recent fluctuations in Bitcoin’s value. The cryptocurrency recently surpassed $106,000 before stabilizing around $104,000. Analysts suggest these movements may be influenced by anticipation surrounding the Federal Reserve’s upcoming interest rate decision.
The news has had a positive impact on MicroStrategy’s stock price, which rose by over 5% in pre-market trading to $431 per share. The stock has seen significant growth this year, increasing 547% year-to-date and 188% in the last three months.