Microstrategy acquires 11,000 BTC, raising its holdings to 461,000. Learn how the $1.1B bitcoin purchase fits into its bold crypto strategy.
Microstrategy Makes $1.1 Billion Bitcoin Purchase, Strengthens Position as Crypto Leader
Microstrategy Inc. (Nasdaq: MSTR) has announced a significant addition to its bitcoin holdings, purchasing 11,000 BTC for $1.1 billion. This acquisition, detailed in a U.S. Securities and Exchange Commission (SEC) filing on Jan. 21, 2025, brings the company’s total bitcoin reserves to 461,000 BTC.
SEC Filing Details Recent Stock Sales
Between Jan. 13 and Jan. 20, Microstrategy raised $1.1 billion by selling 3,012,072 shares of its Class A common stock. These proceeds financed the bitcoin purchase at an average price of $101,191 per bitcoin, including fees. To date, the firm has spent $29.3 billion on bitcoin acquisitions, with an average purchase price of $63,610 per bitcoin.
Evaluating Shareholder Impact
In its filing, Microstrategy highlighted its BTC Yield metric, a performance indicator reflecting bitcoin holdings relative to its diluted share count. As of Jan. 20, the BTC Yield was reported at 1.69% year-to-date. While not a standard financial metric, the company views BTC Yield as a tool for investors to assess its capital allocation strategy.
Saylor’s Vision for Bitcoin’s Future
Executive Chairman Michael Saylor projects significant growth for bitcoin, suggesting prices could range from $3 million to $49 million per coin by 2045, depending on market conditions. He attributes this outlook to bitcoin’s capped supply and potential as an inflation hedge.
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