MicroStrategy executed a significant acquisition by purchasing approximately 10,107 Bitcoin for nearly $1.1 billion in the closing days of 2024, a move announced publicly in January 2025. The transaction was carried out at an average price close to $108,775 per Bitcoin, marking one of the largest single Bitcoin purchases by the company this year. Primarily funded through proceeds from convertible notes issuance and the sale of shares, this acquisition underscores MicroStrategy’s continued commitment to expanding its Bitcoin reserve during a time of tentative market sentiment shaped by macroeconomic uncertainties and geopolitical factors.
MicroStrategy reinforces its Bitcoin commitment with a $1.1 billion purchase amid complex market dynamics.
Following this purchase, MicroStrategy’s total Bitcoin holdings surged to nearly 461,000 BTC, positioning the company’s aggregate Bitcoin asset value at approximately $56 billion in early 2025. This accumulation represents roughly 2.1% of the total Bitcoin supply projected to ever exist, making MicroStrategy the holder of the largest corporate Bitcoin reserve worldwide by a substantial margin. With an average cost basis of about $62,503 per Bitcoin across all holdings, the company’s strategic accumulation maintains a significant cost advantage that is significant amid price volatility typical of the cryptocurrency market.
The timing of the purchase was strategic, coinciding with MicroStrategy’s preparation for a potential blackout period in January 2025, during which the company planned to temporarily suspend further share and bond issuances for Bitcoin acquisitions. This decision came amid industry speculation regarding broader trends in corporate Bitcoin accumulation. Significantly, the announcement elicited a modest market reaction, with MicroStrategy’s stock declining by approximately 8%, reflecting investor wariness in the immediate aftermath.
From a financial standpoint, the acquisition utilized convertible notes and anticipated proceeds from a planned $2 billion perpetual preferred stock offering. Such financial instruments are part of a larger framework designed to manage Bitcoin’s price volatility risks for institutional investors while allowing the company to deploy capital effectively under favorable market conditions.
Michael Saylor, the primary architect of this strategy, continues to advocate Bitcoin’s role as a superior treasury reserve asset amid global inflationary pressures and weakening fiat currencies. His long-term bullish conviction on Bitcoin is integral to MicroStrategy’s corporate identity, embedding digital assets deeply into its financial architecture and distinctly marking the firm’s approach within the intersection of technology and institutional investment.
Bitcoin’s decentralized nature and its secure transaction records maintained on the blockchain technology ledger provide added confidence for institutional investors like MicroStrategy.
