MicroStrategy, a prominent business intelligence firm, has been making significant strides in its Bitcoin acquisitions as November comes to a close and December begins. The company has now surpassed the milestone of acquiring over 400,000 BTC in its portfolio.
This surge in purchases follows MicroStrategy’s ambitious announcement just over a month ago, outlining plans to raise $21 billion through stock sales to fund additional Bitcoin acquisitions. In the past week alone, the company sold 3.7 million MSTR shares, generating approximately $1.5 billion in proceeds. These proceeds were promptly reinvested into Bitcoin, marking the fourth consecutive week of Bitcoin purchases by MicroStrategy.
According to Bloomberg data, MicroStrategy still has around $11.3 billion remaining in stock issuance under its at-the-market share program. The company aims to reach $21 billion in funding through fixed-income securities by 2027. The most recent filing with the US Securities and Exchange Commission (SEC) reveals that MicroStrategy acquired 15,400 Bitcoin from November 25 to December 1 at an average price of about $95,976 per token. Since November 11, the company has invested over $13.5 billion in BTC in three batches, bringing its total holdings to approximately $38 billion, or 402,100 BTC, with an average purchase price of $56,658 per coin.
MicroStrategy’s aggressive purchasing strategy has caught the attention of other companies looking to emulate its success. MARA Holdings, a cryptocurrency mining company, recently announced the acquisition of $618 million worth of Bitcoin over the past two months. The company is also planning a $700 million convertible senior note offering, with intentions to allocate some of the net proceeds towards additional Bitcoin purchases. This trend is noteworthy, especially as crypto mining stocks have faced challenges this year, particularly after the Bitcoin rewards Halving in April.
Miners like MARA are shifting towards a treasury strategy focused on accumulating Bitcoin rather than selling it, following a 44% drop earlier this year. Similarly, Riot Platforms, another mining company, has decided to temporarily halt the sale of mined BTC to increase its holdings after experiencing a 20% drop in share value this year.
As of now, Bitcoin is trading at $95,180, down 1.6% in the 24-hour timeframe. The cryptocurrency has been consolidating between $91,000 and $98,000 over the past 10 days, failing to retest its record high of $99,540 and reach the elusive $100,000 milestone.
In conclusion, MicroStrategy’s continued Bitcoin acquisitions, along with the strategic shifts in crypto mining firms, reflect the evolving landscape of digital asset investments. The market’s response to these developments will be crucial in shaping the future of cryptocurrency adoption and investment strategies.