MicroStrategy announced a Bitcoin purchase of $561,000,000 on Monday. The firm used the proceeds from stock sales to fill its corporate coffers as their stock entered the Nasdaq-100 index.
MicroStrategy, which sold 1.3m shares during the week to the SEC, said the proceeds from the sale were used to grow its Bitcoin portfolio by 5,200 BTC. You can find out more about this by clicking here..
Self-described Bitcoin developer company has 444,262 BTC worth $42 billion at the time of writing. The Tyson-based company began stacking Bitcoins in 2020 and has since become the largest corporate owner of this asset.
MicroStrategy purchased 5,262 BTC in a deal worth $561m at $106662 a bitcoin. MicroStrategy achieved 73.7% Yield YTD. On 12/22/2024 we hold $444,262 BTC purchased for $27.7 billion, or $62.257 per Bitcoin. $MSTR https://t.co/asDGerBV7q
— Michael Saylor⚡️ (@saylor) December 23, 2024
MicroStrategy made its most recent purchase for the seventh Monday in a line. Since November 11, it has bought a total 192,000 BTC. Saylor Tracker. This sum is valued around $18 billion as at this time.
MicroStrategy’s acquisition of Bitcoin has taken place for a long time. However, the announcement made on Monday was historic for MicroStrategy. The company was founded in 1984. MicroStrategy, which includes the 100 largest non-financial firms listed on Nasdaq Stock Index such as Apple, Nvidia and others, was included in the Nasdaq 100 index this past month.
MicroStrategy’s shares have officially started trading in the index on Monday.
Michael Saylor wrote in X (formerly Twitter) on Monday, MicroStrategy’s co-founder and CEO, that their latest Bitcoin purchase cost an average of approximately $106,600. After Election Day, MicroStrategy began buying Bitcoins at a cost of around $74,400 each.
MicroStrategy's inclusion in the benchmark was widely Lauded Bitcoin fans may be disappointed, but Bloomberg ETF analyst James Seyffart said that the inclusion of this stock could have significant consequences. He said earlier this month that he Writer In a note of research, it was noted that this shift may result in net purchases of up to “$2.1 billion in shares by ETFs.”
Juan Leon, Senior Investment Strategist at Bitwise. Decrypt that flows from passive and active managers could juice MicroStrategy's trading volume, causing it to trade 20% to 40% more on a given day.
"That would have a substantial impact on price," he said, positing that the stock could have 50% or more greater upside on days with positive flows, now that it's included in the Nasdaq-100 benchmark
Bitcoin’s price peaked last week at $108,000 but since then has dropped to $93,700 due to hawkish remarks from the Federal Reserve. U.S. Central Bank adopts a cautious tone in regards to inflation. The following are some of the ways to get in touch with each other In the coming year, it will cut rates more slowly.
Saylor, when Bitcoin was hovering near its all-time high, compared Bitcoin with Manhattan’s realty sector. Add to cart This company is a good example of a business that has a great deal to offer. “will just keep buying the top forever.”
The Use of Convertible notes. The company has effectively been able buy Bitcoin using leverage. MicroStrategy has been criticized by analysts for its strategy. sizable premium MicroStrategy share price compared with its Bitcoin holdings
MicroStrategy shares have also dropped as Bitcoin fell below the $100,000 threshold. MicroStrategy’s stock price fell 6% to $342 shortly after the opening bell on Monday. This represents a drop of 17% over the last week.
Andrew Hayward edited the book
Editor's note: This story was updated after publication to include an analyst comment.