MicroStrategy continues its aggressive Bitcoin acquisition strategy, purchasing an additional 10,100 BTC for $1.1 billion**. The company now holds **471,100 BTC** in its treasury, worth approximately **$46 billion at current market prices, reinforcing its commitment to Bitcoin as a core treasury asset despite market fluctuations.
Key Highlights of MicroStrategy’s Bitcoin Strategy
Latest Purchase Details
- Quantity Acquired: 10,107 BTC
- Investment Amount: ~$1.1 billion
- Average Purchase Price: ~$105,596 per Bitcoin
- Total Holdings: 471,107 BTC (as of January 26, 2025)
- Cumulative Investment: ~$30.4 billion
- Average Cost Basis: ~$64,511 per Bitcoin
Funding the Acquisitions
MicroStrategy financed its recent purchases through strategic stock sales, raising $1.1 billion by increasing its authorized Class A common shares from 330 million to 10.3 billion. This move highlights the company's aggressive funding approach to sustain its Bitcoin accumulation strategy.
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Michael Saylor’s Vision
Co-founder Michael Saylor reiterated MicroStrategy’s long-term commitment to Bitcoin, positioning it as a hedge against inflation and economic instability. His public statements align with growing institutional interest in Bitcoin as a strategic reserve asset.
Market Context
- Bitcoin’s price experienced a 6% correction shortly after MicroStrategy’s purchase, dipping below $100,000.
- The company’s 12-week buying streak underscores its confidence in Bitcoin’s value proposition, even amid volatility.
Why MicroStrategy’s Strategy Matters
- Corporate Adoption Benchmark: MicroStrategy sets a precedent for Bitcoin as a treasury asset.
- Inflation Hedge: Bitcoin’s scarcity makes it a compelling store of value.
- Institutional Confidence: Sustained accumulation signals trust in Bitcoin’s long-term growth.
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FAQs
How much Bitcoin does MicroStrategy own?
As of January 2025, MicroStrategy holds 471,100 BTC, worth ~$46 billion.
How does MicroStrategy fund its Bitcoin purchases?
The company primarily uses proceeds from stock sales and capital raises, such as its recent $1.1 billion share authorization.
What is MicroStrategy’s average Bitcoin purchase price?
The average cost basis is **$64,511 per Bitcoin**, though recent acquisitions were made at ~$105,596 per BTC.
Why does MicroStrategy keep buying Bitcoin?
The firm views Bitcoin as a superior treasury asset for capital preservation and long-term appreciation, especially amid inflationary pressures.
Has MicroStrategy sold any Bitcoin?
No. The company maintains a hodl strategy, with no recorded sales since its first purchase in 2020.
Conclusion
MicroStrategy’s unwavering Bitcoin accumulation reflects a bold corporate strategy that could redefine treasury management. With $46 billion in BTC holdings, the firm remains a bellwether for institutional adoption, blending financial innovation with a steadfast belief in Bitcoin’s future.