MicroStrategy acquires 55,500 Bitcoin for $5.4 billion

Key Takeaways

MicroStrategy acquired an additional 55,500 BTC as part of its strategy to increase Bitcoin holdings.
Bernstein projects MicroStrategy’s Bitcoin holdings could reach 830,000 BTC by 2033, valued at $1 million per coin.

MicroStrategy said Monday it had acquired an additional 55,500 Bitcoin for $5.4 billion at an average price of $97,862 per coin. The announcement comes after the company successfully completed its senior note offering last Friday.

MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM

— Michael Saylor⚡️ (@saylor) November 25, 2024

Having added over 130,000 BTC to its portfolio this month, MicroStrategy now holds a total of 386,700 BTC, valued at approximately $38 billion at current market prices. The latest acquisition of $5.4 billion is the company’s largest purchase to date.

MicroStrategy is ahead of schedule in its plans to raise $42 billion over the next three years to finance its Bitcoin acquisitions. The company has already secured $3 billion in convertible debt and $6.6 billion in equity this month.

Bernstein analysts predict MicroStrategy’s Bitcoin holdings will increase from 1.7% to 4% of the circulating supply by 2033. Analysts raise their price target for shares of MicroStrategy (MSTR) to $600 by the end of 2025.

The update follows a rapid stock price increase driven by the company’s aggressive Bitcoin investment strategy. MicroStrategy stock has soared over 560% this year, outpacing most S&P 500 indexes, according to data from Yahoo Finance.

Bernstein projects MicroStrategy could hold approximately 830,000 BTC by the end of 2033, valued at $830 billion at a price of $1 million per coin.

Analysts believe that favorable regulatory conditions under the incoming Trump administration, growing institutional adoption, and macroeconomic factors such as low interest rates and inflation risks support a sustained bull market for Bitcoin.