MicroStrategy enlarges Bitcoin coffers by $561m

MicroStrategy has expanded its weekly Bitcoin buying spree for the seventh consecutive year, solidifying its position as the largest institutional holder of Bitcoin with approximately $45 billion in assets.

MicroStrategy chairman Michael Saylor announced that the company purchased 5,262 Bitcoin (BTC) at an average price of $106,662 before the recent market correction. The Virginia-based software company currently holds 444,262 BTC, strengthening its lead as the largest institutional Bitcoin holder.

With an initial investment of $27.7 billion, MicroStrategy has made unrealized profits of approximately $15 billion at the time of this writing, despite last week’s cryptocurrency market downturn.

24-hour BTC price chart – December 23 | Source: crypto.news

Responses from skeptics regarding Bitcoin’s current price and MicroStrategy’s purchase price flooded Saylor’s weekly announcement on X.

The market-wide correction following the Federal Reserve’s hawkish stance saw BTC trading below $95,000 at the time of writing. Critics, including US stockbroker and economist Peter Schiff, took aim at Saylor’s approach, noting that the latest purchase was the firm’s smallest in seven weeks. Schiff argued that MicroStrategy should focus on buying the dip to maximize shareholder value.

Looks like you’re running out of firepower to continue supporting Bitcoin. Plus, not only is this your smallest purchase, it’s also the first time your average purchase price rose above the market price on the Monday you announced the purchase.

— Peter Schiff (@PeterSchiff) December 23, 2024

In addition to the Bitcoin purchase, MicroStrategy disclosed in its Form 8-K filed with the Securities and Exchange Commission that it sold approximately 1.32 million shares of MSTR convertible bonds, generating over $7 billion in proceeds. The funds are reportedly intended for the purchase of more Bitcoin.

While Saylor announced its smallest purchase in seven weeks, Metaplanet, hailed as Japan’s MicroStrategy, announced its largest BTC purchase ever. The Tokyo-based company pumped $60.6 million into the Bitcoin treasury.