MicroStrategy Adds $2.1bn In Bitcoin, Now Holds 423,650 BTC

MicroStrategy purchased another 21,500 Bitcoin (BTC) for $2.1billion between 2 and 8 December, according to the company’s co-founder Michael Saylor in a tweet today.

This latest transaction brings MicroStrategy’s total BTC holdings to 423,650 tokens, worth more than $41.4bn at today’s current trading price.

In its recent 30 October earnings call, MicroStrategy stated that it intends to buy $42bn worth of BTC by 2027, according to CEO Phong Le. The company’s ’21/21′ plan aims to raise $21bn from debt and $21bn from equity offerings

The purchase comes as the Bitcoin price has fallen back under the recent $100,000 milestone. At the time of writing, BTC is moving at $97.8k, down 2.05% in the past 24 hours, according to CoinMarketCap. 

MicroStrategy now holds 423,650 BTC

In the same tweet, Saylor also announced that the company has achieved a BTC yield of 43.2% quarter-to-date and 68.7% year-to-date.

MicroStrategy has been accumulating BTC under Saylor’s leadership since late 2020. The company’s first BTC purchase dates back to 14 September 2020, when it purchased 16,796 BTC for $175m. Since then, the company has made 47 purchases irrespective of market conditions.

MicroStrategy’s first billion-dollar BTC purchase was made on 24 February 2021 when the company bought 19,452 BTC for the price of $52,765 each, at a total value of $1.026bn, according to data from Saylortracker. On 2 December 2024, Saylor made another 15,400 BTC purchase at a cost of $1.5bn.

The estimated value of MicroStrategy’s BTC holdings now comes to approximately $41.4bn.

Michael Saylor’s Bitcoin accumulation strategy

MicroStrategy has used several strategies to accumulate BTC:

• Equity sales: The company has been issuing equity, leveraging its elevated stock price to raise funds for BTC acquisitions. Since October 2024, MicroStrategy has issued approximately $12bn worth of equity as part of a $42bn program involving the sale of stock and bonds over three years.
• Convertible bonds: MicroStrategy has also issued convertible bonds, which are loans that can be turned into company shares later. This allowed the company to borrow money at very low interest rates to buy more BTC.

This aggressive BTC strategy has led to a surge in MicroStrategy’s MSTR stock, which has increased by 570% year-to-date.

Beyond corporate investment, Saylor has become one of the most prominent advocates for BTC adoption. He has presented detailed BTC investment strategies to other corporate boards, including Microsoft, suggesting that embracing BTC could significantly improve shareholder value.

Saylor has also been vocal on how the government should approach BTC. In a recent conversation with Yahoo, Saylor asked the US government to sell all the gold and buy BTC. “You will demonetize the entire gold asset class, and our enemies hold gold in their banks, so their assets would go to zero. Our assets would go to 100 trillion dollars,” Saylor stated.

While MicroStrategy’s BTC-centric strategy has yielded substantial gains, it introduces heightened volatility and risk. The company’s financial health is closely tied to BTC’s market performance, making it vulnerable to major fluctuations.