In an announcement earlier today, business intelligence firm MicroStrategy revealed its continued Bitcoin (BTC) acquisition streak, purchasing 10,107 BTC for $1.1 billion. This latest purchase brings MicroStrategy’s total Bitcoin holdings to an impressive 471,107 BTC.
MicroStrategy Not Fazed By Crypto Market Drawdown
Despite the total crypto market cap declining from $3.75 trillion on January 25 to $3.55 trillion at the time of writing, Michael Saylor’s MicroStrategy remains steadfast in its quest to accumulate as much BTC as possible.
The company’s latest acquisition of 10,107 BTC cost $1.1 billion at an average price of $105,596 per Bitcoin. With this addition, MicroStrategy now holds a total of 471,107 BTC, valued at approximately $30.4 billion. The average acquisition cost stands at $64,511 per Bitcoin.
In an X post, Saylor remarked that the year-to-date (YTD) BTC Yield currently stands at 2.90%. For the uninitiated, BTC Yield is a key performance indicator used to gauge the performance and strategic value of BTC as a corporate treasury asset.
Notably, Peter Schiff, a prominent financial commentator and stockbroker, responded to Saylor’s post, pointing out that MicroStrategy’s average Bitcoin purchase price has steadily increased. He cautioned that it might not be long before the company’s entire Bitcoin position could face a loss.
In addition to its latest Bitcoin purchase, MicroStrategy has filed a shelf registration statement with the US Securities and Exchange Commission (SEC) to support future Bitcoin acquisitions and address other working capital needs.
For clarity, a shelf registration allows a company to pre-register securities – such as bonds, common stock, preferred stock, warrants, and units – and “shelve” them for up to three years. This approach enables the company to issue securities at any time during that period without requiring a new registration for each issuance, providing flexibility to raise capital quickly under favorable market conditions.
As of January 23, 2025, MicroStrategy had 231,632,665 outstanding shares of Class A common stock and 19,640,250 outstanding shares of Class B common stock. Furthermore, Saylor announced the launch of a new convertible preferred stock offering available to institutional and select retail investors.
Rising Crypto Adoption: A Donald Trump Effect?
Following Donald Trump’s victory in the November US presidential election, more companies are expected to include crypto assets as part of their corporate treasury strategies. To recall, Trump’s campaign emphasized favorable cryptocurrency regulations as a core policy promise.
However, MicroStrategy may face tax challenges, as a recent report suggests the company could owe over $19 billion in taxes on unrealized gains from its Bitcoin holdings. At press time, BTC trades at $101,648, down 2.9% in the past 24 hours.
Featured Image from Unsplash.com, Charts from Yahoo! Finance and TradingView.com
