MicroStrategy Buys $1.5 Billion in Bitcoin at Record Price
Date: 2024-12-17 Author: Gabriel Deangelo Categories: BUSINESS
MicroStrategy has completed another major Bitcoin purchase worth approximately $1.5 billion, the first time in the company’s history that it has purchased the cryptocurrency at an average price above $100,000. The transaction took place between December 9 and December 15, 2024, and solidified the company’s lead as the largest corporate holder of BTC.
According to a Form 8-K report on December 16, MicroStrategy purchased 15,350 BTC, bringing the total number of bitcoins under management to 439,000. At the moment, their combined value is $27.1 billion, and the average price of all the company’s purchases is $61,725 per unit. The deal was financed through the sale of Class A shares, raising around $1.54 billion for MicroStrategy.
The company continues to roll out its proprietary BTC Yield metric, which measures the profitability of its strategy. The metric has grown by 72.4% year-to-date, and from October 1 to December 15, it reached 46.4%.
Michael Saylor, executive chairman of MicroStrategy, remains one of the most vocal proponents of Bitcoin. He views the cryptocurrency as a key hedge against inflation and the devaluation of traditional currencies. Saylor emphasizes that the long-term value of BTC remains stable despite market fluctuations.
The rise in the Bitcoin exchange rate confirms this position. Today, BTC has reached a new all-time high of $106,488. This result has strengthened MicroStrategy’s confidence in the correctness of its chosen strategy, despite criticism from economists and skeptics.
The company’s strategy has been the subject of controversy on more than one occasion. Renowned economist Peter Schiff, a cryptocurrency critic, has weighed in again. In a post on X, he wrote, “The price of Bitcoin will collapse when you stop buying. What happens when your creditors force you to sell?” However, MicroStrategy’s success so far defies such predictions. The company recently entered the top 100 public companies in the US by market capitalization, highlighting that its bold bet on Bitcoin is paying off and strengthening the company’s position in the global market.
