As an analyst with over two decades of experience in the tech and financial sectors, I must admit that MicroStrategy’s moves this year have been nothing short of impressive. The company’s aggressive Bitcoin acquisition strategy, coupled with its recent inclusion in the prestigious Nasdaq-100 index, paints a picture of a firm that is not only navigating the current market landscape deftly but also positioning itself as a pioneer in the digital economy.
As an analyst, I’m here to share some insights about MicroStrategy, a software titan renowned for its innovative approach to Bitcoin investments. In the recent period spanning from December 16th to the 22nd, this tech giant has bolstered its Bitcoin reserves with another 5,262 BTC, valued at approximately $561 million. This acquisition brings MicroStrategy’s total Bitcoin holdings to a staggering 444,262 BTC, which they’ve accumulated at an aggregate cost of a whopping $27.7 billion. With each Bitcoin acquired at an average price of around $62,257, it’s clear that MicroStrategy continues to demonstrate its commitment to the digital currency market.
By the end of 2024, MicroStrategy stands as the world’s largest corporate Bitcoin holder, outpacing BlackRock and Grayscale Investments. As of December 23, their Bitcoin portfolio has demonstrated a return of 47.4% for the quarter and an impressive 73.7% for the year.
MicroStrategy recently purchased 5,262 Bitcoins for approximately $561 million, which equates to about $106,662 per Bitcoin. This transaction has resulted in a Quarter-to-Date (QTD) Bitcoin Yield of 47.4% and Year-to-Date (YTD) yield of 73.7%. As of December 22, 2024, they hold a total of 444,262 Bitcoins, acquired for approximately $27.7 billion, with each Bitcoin costing around $62,257. The symbol for this company is $MSTR.
— Michael Saylor⚡️ (@saylor) December 23, 2024
Last week, our business intelligence company decided to sell 1,317,841 shares to finance the recent Bitcoin acquisition we made. This transaction brought in approximately $561 million in total earnings. As stated in a report filed with the U.S. Securities and Exchange Commission (SEC), these funds were then used for the actual purchase.
The transaction was a continuation of the firm’s long-term Automated Teller Machine (ATM) initiative, which currently holds approximately $7 billion in unsold stocks. Consistent with past practice, the earnings from this sale could potentially be channeled towards further Bitcoin acquisitions.
MicroStrategy Joins the Nasdaq-100 Index
This year, MicroStrategy has been recognized by being added to the Nasdaq-100 index, joining forces with Palantir Technologies and Axon Enterprise.
Last Friday, Nasdaq revealed the list, indicating that the inclusion becomes active starting today. The Nasdaq-100 index consists of 100 prominent non-financial firms traded on the Nasdaq Stock Exchange, earning it a distinguished status as a benchmark for technology and innovation.
Including MicroStrategy in such prestigious company indices demonstrates faith in its financial resilience and market success, placing it alongside industry titans like Apple, Microsoft, and Amazon. For shareholders, this achievement could potentially lead to enhanced liquidity and appraisal as more investment funds tracking the Nasdaq-100 index consider adding MicroStrategy’s stock to their portfolios.
A Year of Milestones for MicroStrategy
2024 stands out as a milestone year for MicroStrategy, not just due to its entry into the prestigious Nasdaq-100 index, but also because of its bold Bitcoin buying spree. Over the span of November and December, the company executed as many as seven distinct Bitcoin purchases.
Michael Saylor, the founder of the company and a well-known Bitcoin supporter, has repeatedly made the case that Bitcoin serves as an excellent long-term protection against inflation and economic instability.
On December 21st, he proposed a Digital Assets Structure for the U.S., suggesting the establishment of a Bitcoin reserve which he believes could potentially yield as much as $81 trillion in income for the national Treasury.
On platform X, Saylor put forth that the suggested reserve system is anticipated to strengthen the nation’s traditional currency, aid in managing the national debt, and establish the United States as a leading force in the digital economy of the 21st century.
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2024-12-23 18:39