MicroStrategy's Bitcoin Buying Spree: What You Need to Know

Key Takeaways

• MicroStrategy has made headlines again by purchasing approximately $209 million worth of bitcoin. This marks the eighth consecutive week of acquisitions.
• The latest purchases have boosted MicroStrategy's total bitcoin holdings to an impressive 446,400 BTC.
• Despite the company's aggressive buying strategy, MicroStrategy's stock fell by 6% in early trading as bitcoin prices dipped.

Recent Purchases

MicroStrategy recently reported to the Securities and Exchange Commission (SEC) that it acquired 2,138 bitcoin between December 23 and December 29, at an average price of $97,837 per bitcoin. This continuous acquisition reflects the company's long-term strategy to hold and accumulate bitcoin as a primary asset.

Stock Performance

After joining the Nasdaq 100 just last week, MicroStrategy's shares experienced a decline of over 6% as bitcoin prices retreated to around $92,500, down from last week's highs of approximately $99,000 and an all-time peak of $108,000 two weeks prior.

The '21/21' Strategy

These bitcoin purchases are part of MicroStrategy’s "21/21" strategy, which aims to raise $42 billion in capital through share sales and fixed-income securities to further invest in bitcoin. The company also reported a year-to-date "bitcoin yield" of 74.1%, indicating substantial growth in its bitcoin holdings per share.