MicroStrategy has increased its Bitcoin holdings by purchasing 5,262 BTC for $561 million. This purchase brings the company’s total Bitcoin holdings to 444,262, acquired at an average cost base of $62,257 per BTC.
The announcement comes as MicroStrategy is listed in the Nasdaq 100 index, which places the firm among the largest firms by market capitalization of the exchange. This boosts its standing among shareholders who want to invest in stocks and seek indirect exposure to Bitcoin.
MicroStrategy’s addition to this Nasdaq 100 index, planned for December 23, 2024, is a monumental development for the software company. The index features the 100 largest non-financial companies by market value, and the listing allows investors with assets such as the Invesco QQQ Trust, which manages $322 billion, to gain access to Bitcoin.
This accomplishment underscores MicroStrategy’s unique role as a publicly traded business heavily exposed to Bitcoin. The firm has embarked on an ambitious Bitcoin strategy of investing $27.7 billion in the cryptocurrency since 2020 under the leadership of Michael Saylor, the co-founder.
The company's stock performance reflects its strategy. MSTR stock has risen over 470% year-to-date, outpacing BTC and most market indices.
In addition, MicroStrategy has experienced other notable changes within its executive management. The company welcomed Binance.US former CEO Brian Brooks and Galaxy Digital board member Jane Dietze joined the board. These appointments are geared towards its vision to continue being relevant in the Bitcoin ecosystem.
Michael Saylor, a pro-Bitcoin CEO, restated his firm’s intention to continue purchasing the cryptocurrency. During a recent interview, he explained the idea of purchasing even more Bitcoins, no matter the price, as part of a long-term strategy.
Moreover, Saylor backed Trump’s concept of having a U.S. strategic Bitcoin reserve, which the President-elect proposed earlier. He focused on a well-regulated legal framework that will create billions of dollars of wealth and improve the United States economy.
This latest Bitcoin purchase marks the company's seventh within a week. The company purchased 15,350 bitcoins for $1.5 billion the previous week, which shows that it is continuing to build its reserves.
The firm still has about $15 billion in unrealized profit from its BTC investment. This focus remains on Bitcoin in the corporate world. It continues to assert its dominance as the pioneer regarding how cryptocurrency may be utilized in business operations.