MicroStrategy Extends Its Bitcoin Acquisition Strategy, Buys 2,138 BTC for $209M

Technology company MicroStrategy Inc (NASDAQ:MSTR) has added to its Bitcoin (CRYPTO: BTC) holdings with a new purchase of 2,138 BTC, valued at about $209 million, bringing the company’s total cryptocurrency holdings to 446,400 BTC.

The acquisition was announced by MicroStrategy’s Executive Chairman Michael Saylor on Monday.

According to Saylor, the Bitcoin was purchased at an average price of $97,837 per coin.

Highlighting the company’s performance, Saylor noted a “BTC Yield of 47.8% QTD and 74.1% YTD.”

As of Dec. 29, MicroStrategy’s total Bitcoin holdings were acquired for about $27.9 billion at an average price of $62,428 per Bitcoin.

This latest purchase marks the eighth consecutive week of Bitcoin acquisitions for MicroStrategy.

However, the volume of purchases has decreased compared to previous weeks.

Bloomberg noted the decreasing volume, which could be a response to the recent price fluctuations that saw Bitcoin briefly cross the $100,000 threshold before retracing.

MicroStrategy’s aggressive Bitcoin strategy has led the company to new heights, with its market capitalization exceeding $80 billion and securing its place in the Nasdaq 100 Index.

This inclusion is expected to boost the company’s visibility and attract significant inflows from major ETFs.

The company’s success has not been without its critics.

Research by BitMEX on Nov.22 highlighted that MicroStrategy is trading at a 256% premium to the net asset value of its Bitcoin holdings.

This extreme valuation disparity has led some analysts to question the sustainability of the company’s strategy and the rationality of investor behavior.

Despite these concerns, MicroStrategy is set on continuing its Bitcoin-centric approach.

The company aims to raise $42 billion over the next three years through stock sales and convertible debt offerings to fund further Bitcoin purchases.

MicroStrategy has already completed over two-thirds of its equity goals in just two months.