MicroStrategy, in a move which has almost become routine, has made headlines once again by acquiring an enormous amount of Bitcoin ( BTC).
MicroStrategy bought 15,400 BTC in exchange for $1.5 billion . This was revealed by a Form 8K that public companies file with the U.S. Securities and Exchange Commission to inform them of unexpected corporate events.
The average price per Bitcoin paid by the business intelligence company was $95,976, including all fees and expenses.
MicroStrategy has now returned 63.3% of its Bitcoin investment for the year to date and 38.7% in the last quarter.
Bitcoins are fueled by strategic stock sales
This purchase was funded by the sale of Class-A common stock pursuant to a previous sales agreement. MicroStrategy generated a net profit of approximately $1.48 billion between Nov. 25th and Dec. 1st after subtracting the sales commissions.
This sale is part a larger plan, under a sales agreement with various institutions that allows the issuance and selling of up to $11 billion in shares.
MicroStrategy has accumulated 402,100 BTC as of December 1, at a total purchase price of approximately $23.4 Billion. This is equivalent to an average Bitcoin price of $58,263 including fees and costs.a
The agreement signed on October 30 with TD Securities USA LLC and other agents has facilitated the sales of shares. This leaves the company with shares worth approximately $11.3 billion available for future transactions.
2025 Will be the “Year of the Crypto Renaissance”.
MicroStrategy is actively accumulating Bitcoin. The company strategically issues shares to fund these purchases.
This strategy is in line with the vocal support of CEO Michael Saylor for Bitcoin. MicroStrategy has further cemented its position as one of the leading institutional holders of cryptocurrency.
MicroStrategy describes Bitcoin as the “highest performing uncorrelated asset a corporation could hold on its balance sheets” in a recent presentation describing the company’s Bitcoin strategies.
MicroStrategy’s presentation predicts 2025 as the “year the crypto renaissance”. This prediction is based upon anticipated developments, such as Wall Street’s embrace of Bitcoin ETFs, the widespread adoption of fair-value accounting for digital assets and the pro-Bitcoin position of the next U.S. President and Cabinet.
MicroStrategy expects a growing support from Congress for crypto. The establishment of a “Bitcoin Strategic Reserve” and a clear legal framework for digital assets are also expected to contribute to this “renaissance”.
MicroStrategy (MSTR)’s stock is closely linked to Bitcoin’s performance but with amplified fluctuations. MSTR’s surge has been 513%, while Bitcoin is up by 150%. MSTR’s 58% increase in November was more than Bitcoin’s 37% rise for the month.
Bitcoin is a popular inflation hedge for more companies
MicroStrategy’s pursuit of Bitcoin is not unique. As a hedge against inflation , a growing number of businesses are including the cryptocurrency in their balance sheets.
The artificial intelligence company Genius Group has also joined this trend by purchasing 110 bitcoins for $10 million on November 18, and stating its intention to keep up to 90% its reserves in bitcoin in the future.
Semler Scientific , a tech solution provider, increased‘s Bitcoin holdings by 1,570 BTC, after purchasing 297 coins between November 18 and 22, at an average cost of $75,039 each.
Metaplanet , a Japanese investment company, plans to raise more than $62 million via a stock purchase plan in order to add to its existing holdings of 1,142 Bitcoin.
