Thomas Daniels
After posting a mysterious tweet, Michael Saylor, the executive chairman and former CEO of MicroStrategy, has raised rumors about yet another Bitcoin acquisition. A screenshot of the “next green dot” on the Saylortracker chart, which monitors the business’s Bitcoin purchases, was included in the message. A fresh addition to MicroStrategy’s Bitcoin holdings, which currently stand at 447,470 BTC, or around $42.24 billion, is represented by each green dot.
The Aggressive Accumulation Strategy of MicroStrategy
On January 6, 2025, the corporation made its most recent acquisition, paying $101 million for 1,070 Bitcoin at an average price of $94,004. This is in keeping with MicroStrategy’s aggressive Bitcoin accumulating strategy, which saw impressive results in 2024.
MicroStrategy invested $22.07 billion in 2024, purchasing 258,320 Bitcoin at an average price of $85,450. The method increased the company’s original holding of 189,150 BTC by an additional 140,630 BTC, yielding an amazing 74.3% return. Saylor claims that this amounts to an average of 385 BTC being bought every day all year long.
Results and Performance
The unrealized return on MicroStrategy’s Bitcoin investment to date is 51.11%, or $14.28 billion in paper earnings. With a market valuation of $80.59 billion, the company’s stock, which is traded under the symbol MSTR, is currently trading at $327.91. With 226.14 million outstanding shares, the net asset value premium is 1.91x.
The meticulous dollar-cost averaging strategy of MicroStrategy, which started with acquisitions at about $10,000 per Bitcoin in 2020 and continues with acquisitions close to $100,000 now, is highlighted in the Saylortracker figure. Additionally, the chart shows that buying activity is higher during market rises and declines.
Prospects for the Future
According to Saylor, the company’s 2024 accumulation alone would increase shareholder worth by $14.06 billion, or $38.5 million every day, at a $100,000 price for Bitcoin. Despite Bitcoin’s recent decline to the $95,000 mark, this is consistent with MicroStrategy’s long-term optimism about the cryptocurrency’s potential.
The most recent indication of potential acquisitions strengthens MicroStrategy’s steadfast faith in its treasury strategy centered on Bitcoin. The company’s accumulation pattern highlights its dedication to leveraging the long-term value of the digital currency as Bitcoin continues to develop as an asset.
