MicroStrategy acquired over 258,000 BTC for $22 billion last year
Company summarized the results of the year
In 2024, MicroStrategy purchased 258,320 BTC, spending $22.07 billion in total. Each Bitcoin cost the software company an average of $85,450, according to the company's founder, Michael Saylor, in a post on the social media platform X.
Key takeaways
- MicroStrategy reported acquiring 258,320 BTC over the year, investing $22.07 billion to bolster its reserves.
- The company is globally recognized as the first to adopt a Bitcoin strategy, a model now emulated by other organizations.
- Most recently, MicroStrategy acquired 1,070 BTC and announced plans to issue additional bonds to further expand its Bitcoin holdings.
Annual performance
Saylor stated that the company's asset returns currently stand at 74.3%. MicroStrategy began the year with 189,150 BTC and accumulated 140,630 BTC over the course of 2024. On average, the company added 385 BTC daily to its reserves. At a Bitcoin price of $100,000, this translates to shareholder value creation of $14.06 billion annually or $38.5 million per day.
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Principles of the Bitcoin strategy
MicroStrategy is renowned for pioneering a Bitcoin-centric strategy now adopted by an increasing number of companies. This approach involves leveraging BTC as the primary store of value and a long-term investment asset.
Founded by Michael Saylor, MicroStrategy began aggressively acquiring Bitcoin in 2020 as a hedge against inflation and a means to enhance corporate value. The company views Bitcoin as "digital gold," capable of providing stability for its assets amid economic uncertainty and the volatility of traditional financial markets.
Public companies holding Bitcoin. Source: BitcoinTreasuries
This strategy incorporates not only Bitcoin accumulation but also the use of various financial instruments for its acquisition. MicroStrategy actively raises funds through bond issuances and convertible securities, directing the proceeds toward cryptocurrency purchases. Although this approach carries risks, it has proven effective; the rising price of Bitcoin has significantly increased the company's asset value, with expectations of continued appreciation in the future.
Latest Bitcoin purchase and future plans
On January 6, MicroStrategy added 1,070 BTC to its reserves at a cost of approximately $101 million. The company now holds 447,470 BTC, valued at approximately $27.97 billion at an average price of $62,503 per Bitcoin.
A few days earlier, MicroStrategy announced plans to raise $2 billion through the issuance of perpetual preferred shares. These shares, which would take priority over Class A common stock in the event of bankruptcy or liquidation, are expected to be issued in Q1 2025 following corporate approval.
MicroStrategy's inclusion in the Nasdaq 100 index on December 23, 2024, which features the largest companies by market capitalization on the Nasdaq exchange, has positioned the company to pursue a more aggressive Bitcoin acquisition strategy.
