thecoinrepublic.com
MicroStrategy (NASDAQ: MicroStrategy (MSTR), the largest corporate holder of Bitcoin, has increased its holding by making another Bitcoin purchase of 15,400 BTC worth $1.5 Billion. The purchase was made at an average price of $95,976 per Bitcoin totaling MicroStrategy holdings to 402,100 BTC.
This latest purchase further bolsters MicroStrategy’s aggressive Bitcoin investment approach thus making it one of the largest institutional investors in the cryptocurrency market.
Funding Raised Through Share Sales
MicroStrategy’s latest purchase of Bitcoin was made through a share sale agreement. From November 25 to December 1, 2024, the company offered shares of stock and generated $1.48 Billion. The sale is part of the plan to sell Microstrategy’s shares up to $21 Billion.
The company’s Bitcoin investments have risen significantly, owing to the long-term Bitcoin price uptrend and the company’s confidence in Bitcoin as a store of value.
MicroStrategy has adopted an aggressive policy of buying Bitcoin, which has positively impacted its stock prices. In the last month, the stock price rose by nearly 50%, with a 150% increase over six months and a staggering 500% rise year-to-date.
With large Bitcoin holdings, MicroStrategy will gain more as Bitcoin continues to surge and nears the key resistance level of $100,000. BTC has been trying to break the $100K for the past few weeks.
The company’s share price surge has also drawn attention from investors looking for exposure to Bitcoin without directly buying the cryptocurrency. MicroStrategy’s success is viewed by many as a validation of its strategy to acquire Bitcoin as a corporate asset.
Given the strong correlation between the company’s stock price and the value of its Bitcoin holdings, MicroStrategy’s performance highlights the growing integration of cryptocurrencies into traditional financial markets.
A Precedent to Bitcoin Adoption by Companies
MicroStrategy is paving the way for other companies to consider using Bitcoin in their financial plans. Its ongoing investment in Bitcoin shows a bold way of adding digital assets to its business.
As more companies start looking at Bitcoin as an investment solution, MicroStrategy could pioneer digital asset integration in corporate finance.
Bitcoin’s increasing acceptance in global financial markets is helping to shape MicroStrategy’s strategy. Meanwhile, the company is positioning itself as a major advocate for the long-term value of the cryptocurrency.
Its Bitcoin holdings are now equivalent to about 402,100 BTC, much higher than most institutional players. Undoubtedly, MicroStrategy is a leading example of a company making Bitcoin a cornerstone of its investment strategy.
MicroStrategy’s Position in the Public Markets for Bitcoin Holdings
The company is now the second largest publicly disclosed holder of Bitcoin, following BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund (ETF).
MicroStrategy has been increasing its Bitcoin holdings making it one of the biggest Bitcoin investors in the crypto market, surpassing most institutional investors.
Bitcoin’s price is currently consolidating between the $95,000 and $98,000 range. After a steady upward rally in recent weeks, Bitcoin has faced resistance at the $98,200 level, which has prevented a breakout.