MicroStrategy Continues Weekly Bitcoin Buying Spree With Another $101 Million

MicroStrategy is back at it again, making waves in the Bitcoin world with yet another sizable purchase. The software company, turned Bitcoin treasury juggernaut, announced its latest acquisition of 1,070 BTC for $101 million—its ninth consecutive weekly buy. Let’s break down what this means for MicroStrategy and the broader Bitcoin space.

MicroStrategy’s Latest Purchase

According to an SEC filing and a Monday announcement from co-founder and Bitcoin bull Michael Saylor, the company purchased Bitcoin at an average price of $94,004 per coin. This brings MicroStrategy’s total holdings to a staggering 447,470 BTC, valued at over $45.5 billion based on Bitcoin’s current price of $101,832.

Their average acquisition price? A savvy $62,503 per BTC.

While this week’s buy is smaller than previous acquisitions, it underscores a consistent commitment to their bold HODL strategy, which began ramping up following Donald Trump’s re-election.

A Bold Strategy: Nine Weeks of Buys

MicroStrategy’s weekly Bitcoin buying spree started in November 2024 and has been nothing short of aggressive:

• November 2024: The company made headlines with record-breaking purchases, including a $5.4 billion acquisition, their largest to date.

• December 2024 to Present: Smaller but steady purchases have followed, reflecting Bitcoin’s rising price and a sustained commitment to their strategy.

While prediction markets like Myriad initially saw an 86% chance of MicroStrategy exceeding 450,000 BTC by week’s end, those odds plummeted to 20% following the announcement of this smaller purchase.

Looking ahead, platforms like Polymarket currently predict only a 2% chance that MicroStrategy will surpass 500,000 BTC by Trump’s inauguration on January 20, 2025.

From Software to Bitcoin Giant

MicroStrategy’s transformation from a data analytics software company to a Bitcoin-centric firm began in 2020. Faced with economic uncertainties during the COVID-19 lockdowns, Michael Saylor turned to Bitcoin as a hedge against inflation and a store of value.

Fast forward to today, and MicroStrategy is the largest publicly traded Bitcoin holder. Investors looking for regulated exposure to Bitcoin can buy MicroStrategy shares, which have skyrocketed over 500% year-to-date.

But the strategy comes with risks. The company’s use of equity and debt to fund its Bitcoin acquisitions has made it highly leveraged. While this has worked spectacularly in Bitcoin’s bull market, analysts caution that a price crash could pose significant challenges.

What’s Next for MicroStrategy?

With 447,470 BTC in their treasury, MicroStrategy’s position is unparalleled. Their stock has become a proxy for Bitcoin exposure, drawing investors and analysts alike. However, the question looms: How sustainable is this strategy in the long term?

As Bitcoin’s price continues to climb, the scale of MicroStrategy’s purchases may taper, but the commitment to HODLing remains resolute. Whether this approach proves to be visionary or overly risky will depend largely on Bitcoin’s trajectory in the months and years to come.

Key Takeaways

• MicroStrategy’s latest purchase of 1,070 BTC brings their total holdings to 447,470 BTC.

• The company has spent an average of $62,503 per Bitcoin, with a total stash now valued at over $45.5 billion.

• Their weekly buying spree, which began in November 2024, highlights their unwavering belief in Bitcoin’s long-term potential.

• Risks remain, given the company’s heavy leverage and reliance on Bitcoin’s performance.

MicroStrategy’s journey is a testament to Bitcoin’s growing role in corporate treasuries and the bold strategies some companies are willing to pursue. The only question now is: Who’s next to follow in their footsteps?