MicroStrategy Starts 2025 with 1,070 BTC Purchase
Date: 2025-01-07 Author: Henry Casey Categories: BUSINESS
In a statement released on January 6, MicroStrategy said it spent approximately $101 million to purchase bitcoin between December 30 and December 31, 2024. The average price for one BTC was approximately $94,004. The transaction was recorded in a filing with the U.S. Securities and Exchange Commission (SEC).
The company currently holds 447,470 BTC, which is approximately $27.97 billion as of January 1, 2025, at a price of $62,503 per bitcoin. It is important to note that MicroStrategy accounts for 2.1% of the total supply of all Bitcoin ever mined.
As in previous cases, the company used proceeds from the sale of shares in a convertible note sale agreement to fund this purchase. Such acquisitions were expected to continue, as MicroStrategy co-founder Michael Saylor hinted at a possible BTC purchase on January 5th, posting a chart from SaylorTracker.
However, the company’s recent trades also showed a slowdown in purchases. Only 45,370 Bitcoin were purchased between December 2nd and December 31st, 2024, representing only 30% of the total purchases between October 31st and December 1st, 2024.
This slowdown in BTC buying activity comes amid warnings from prominent crypto industry figures such as BitMEX co-founder Arthur Hayes about a possible market crash caused by the upcoming inauguration of US President Donald Trump. Some sources have also reported that MicroStrategy may enter a black period in January 2025 to sell shares and convertible bonds, which will slow the pace of Bitcoin purchases.
The company also recently announced its intention to raise $2 billion through the issuance of preferred perpetual shares to further expand its BTC supply. The decision to conduct this offering is entirely at MicroStrategy's discretion and is dependent on market conditions and other factors.
