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MicroStrategy's Bold Finale: Seals 2024 with $209M Bitcoin Buy
12/30/2024 22:49
Having completed the eighth consecutive Bitcoin weekly purchase, MicroStrategy has, therefore, achieved a BTC Yield of 74.1 percent YTD.
Key Notes
- MicroStrategy announced that it has approximately $6.88 billion of shares remaining available for issuance to purchase more Bitcoins.
- The company’s stock market has continued to dip in tandem with Bitcoin in the past three weeks.
MicroStrategy Inc. (NASDAQ: MSTR), a dot-com era software-oriented company that leverages the Bitcoin network, will be closing 2024 in a style after making another strategic investment. According to a form 8-k filed with the United States Securities and Exchange Commission (SEC) on December 30, MicroStrategy acquired about 2,138 BTC $92 118 24h volatility: 2.6% Market cap: $1.82 T Vol. 24h: $47.50 B for around $209 million in cash between December 23 and December 29, 2024.
The company indicated that it sold 592,987 shares under the sales agreement to facilitate the latest Bitcoin purchase. As a result of the latest investment, MicroStrategy has retained about $6.88 billion in shares to sell to strengthen its Bitcoin strategy in the long haul.
In late October, MicroStrategy entered into a sales agreement with TD Securities, Barclays Capital Inc., The Benchmark Company, Canaccord Genuity, and Cantor Fitzgerald to sell its class A common stocks to raise $21 billion to buy more Bitcoins.
Through the sales agent, MicroStrategy has managed to purchase Bitcoins for the eighth consecutive week, with little regard for the BTC price volatility. As of this writing, MicroStrategy held about 446,400 Bitcoins, which were acquired at an aggregate price of about $27.9 billion and an average price of $62,428, including fees and expenses.
Following the continued Bitcoin purchases, MicroStrategy has achieved a BTC Yield of 47.8 percent quarter-to-date (QTD), and 74.1 percent year-to-date (YTD). The company uses the BTC Yield as a measure that represents the percentage change period-to-period of the ratio between the company’s Bitcoin holdings and its shares outstanding.
Market Impact of MicroStrategy’s Bitcoin Move
Amid the ongoing stock sales by MicroStrategy to purchase more BTCs, the value of its stock market has continued to significantly mirror the performance of Bitcoin. According to the latest stock market data, MSTR stock has declined over 19 percent in the past month to trade at about $305 on Monday, during the early mid-New York session.
The company’s stock market has significantly been impacted by the ongoing Bitcoin price correction below the crucial support level of around $93k. Notably, Bitcoin price has spiked more than 14 percent in the past three weeks to trade at about $91,402 at the time of this writing.
According to on-chain data analysis provided by IntoTheBlock, Bitcoin price could easily drop below $90k after losing the crucial support level above $95.5k.
Nevertheless, a continued Bitcoin price correction of up to 30 percent from around $100k could set a precedent for a major bullish uproar in the first quarter of 2025. Moreover, more institutional investors have been purchasing Bitcoins as a hedge factor against inflation and ongoing fiat devaluations around the world.
Additionally, clear crypto regulatory frameworks in the United States will ensure a robust Web3 ecosystem backed by institutional investors and nation-states.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
