Emily Walker
In a recent announcement, MicroStrategy, a leading business intelligence company, disclosed its latest Bitcoin acquisition. The firm has bought 10,107 BTC for a total of $1.1 billion, which increases its overall Bitcoin holdings to a remarkable 471,107 BTC.
MicroStrategy Stays Committed Despite Market Fluctuations
Even with the cryptocurrency market experiencing a decline, shrinking from a valuation of $3.75 trillion on January 25 to approximately $3.55 trillion now, MicroStrategy, led by Michael Saylor, remains focused on gathering Bitcoin.
The recent purchase cost an average of $105,596 per Bitcoin. With this addition, MicroStrategy’s total Bitcoin stash is worth around $30.4 billion, with the average purchase price being $64,511 each.
In a post on X, Saylor pointed out that the Bitcoin Yield for the year to date (YTD) is currently at 2.90%. This yield measures the effectiveness and strategic benefit of holding Bitcoin as a corporate treasury asset.
Notably, financial commentator Peter Schiff reacted to Saylor’s remarks, warning that the average cost per Bitcoin for MicroStrategy has consistently risen and that the company could soon incur substantial losses on its Bitcoin investments.
On top of its recent purchases, MicroStrategy has also submitted a registration statement with the US SEC, aimed at facilitating additional Bitcoin purchases and meeting other funding requirements.
To provide context, a shelf registration allows a company to pre-register various types of securities—such as stocks and bonds—to be issued over a period of up to three years, granting the company the flexibility to raise capital quickly when market conditions are favorable.
As of January 23, 2025, MicroStrategy had a total of 231,632,665 shares of Class A common stock and 19,640,250 shares of Class B common stock. Additionally, Saylor announced a new convertible preferred stock offering aimed at institutional and selected retail investors.
The Impact of Crypto Adoption Post-Election
With Donald Trump’s victory in the November US presidential election, more companies may start adopting cryptocurrency in their treasury strategies, a move encouraged by Trump’s campaign promise of favorable crypto regulations.
However, MicroStrategy might encounter tax complications. Recent reports suggest the company could potentially owe more than $19 billion in taxes due to unrealized gains from its Bitcoin investments. At the time of writing, Bitcoin is trading at $101,648, reflecting a 2.9% drop in the last 24 hours.
