MicroStrategy has purchased Bitcoin for the eighth consecutive week

MicroStrategy has purchased Bitcoin for the eighth consecutive week

MicroStrategy, the business intelligence software company turned Bitcoin investment giant, has continued its aggressive Bitcoin accumulation strategy. On December 29, it was revealed that the company had purchased 2,138 BTC for a total of $209 million. This latest acquisition brings its total Bitcoin holdings to 446,400 BTC. This purchase marks MicroStrategy’s eighth consecutive week of acquiring Bitcoin, further solidifying its position as one of the largest corporate Bitcoin holders.

The company’s average acquisition price for Bitcoin now stands at $62,428 per BTC. Since it first embarked on its Bitcoin strategy in 2020, MicroStrategy has spent over $27.9 billion to build its Bitcoin position. The firm has been funding these purchases through an at-the-market (ATM) program, which allows it to raise capital by issuing shares or securities. As of now, the company has approximately $6.88 billion remaining in this program, suggesting that more Bitcoin purchases are likely to continue in the future.

MicroStrategy’s aggressive Bitcoin strategy has had a significant impact on its market performance. As Bitcoin surged, MicroStrategy’s stock price, traded under the ticker MSTR, also soared. In fact, the company managed to jump into the Nasdaq 100, surpassing 30% of the existing index members and achieving a 0.38% weighting. Its stock price reached a peak of $473.83 on November 21, but it has since dropped by about 40% from that record high. Despite the pullback, MicroStrategy remains 2024’s best-performing stock, with its shares surging 402%, significantly outperforming Bitcoin itself, which saw a 119% increase over the same period.

Bitcoin’s price, on the other hand, has experienced some volatility. After hitting a record high of $108,135 on December 17, Bitcoin’s price has dropped by around 13.9%, currently trading at $92,900. Despite this recent pullback, MicroStrategy’s continued commitment to Bitcoin acquisition indicates that the company believes in Bitcoin’s long-term potential as an asset.

As of now, MicroStrategy’s consistent Bitcoin purchases reflect its belief in the cryptocurrency’s value proposition, and the company has made it clear that it plans to continue buying Bitcoin for the foreseeable future, especially with its substantial remaining capital in the ATM program.

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