Key Takeaways
- MicroStrategy has now acquired 439,000 BTC worth over $45B, increasing its bitcoin holdings significantly through a $1.5B purchase.
- Despite investor concerns about its premium valuation, MicroStrategy's aggressive bitcoin acquisition strategy is supported by analysts, with room for further growth and leverage.
- The company's inclusion in the Nasdaq 100 and potential future S&P 500 entry could significantly boost its market visibility and capital for continued bitcoin purchases.
MicroStrategy's Recent Bitcoin Acquisitions
MicroStrategy has purchased another 15,350 BTC for approximately $1.5B at an average price of $100,386 per bitcoin.
The company now holds 439,000 BTC, worth over $45B, having spent about $27.1B on its bitcoin holdings, including fees and expenses.
It has added $17.5B in bitcoin in the past six weeks alone, accounting for around 39% of its total position.
In addition to bitcoin purchases, MicroStrategy sold 3,884,712 shares to fund its latest acquisition, with $7.65B worth of shares remaining for future sale.
Market Reaction and Bitcoin Yield
MicroStrategy’s stock has gained over 490% year-to-date and continues to see positive movement.
Its key performance indicator, Bitcoin Yield, shows a 72.4% increase, indicating significant growth in bitcoin holdings relative to its diluted shares.
Despite concerns about the company's premium to its net asset value (NAV), analysts believe MicroStrategy’s trajectory of bitcoin buying can continue if bitcoin prices remain stable around $100K.
MicroStrategy's Future Market Plans
MicroStrategy's inclusion in the Nasdaq 100 index, effective December 23, is expected to boost its liquidity and visibility, aiding its bitcoin acquisition strategy.
Market analysts predict that the Nasdaq 100 listing could lead to additional purchases of MicroStrategy stock, enhancing its capital flywheel for more bitcoin buys.
MicroStrategy's potential future inclusion in the S&P 500 could be facilitated by an accounting rule change for bitcoin valuations, improving its prospects for 2025.
