MicroStrategy buys 1,070 BTC for $101 million, bringing total holdings to 447,470 BTC

MicroStrategy, the largest Bitcoin holder, has taken an important step to kick off 2025 advertisement Buy 1070 Bitcoin for approximately $101 million. This acquisition, which was completed from December 30 to 31, 2024, brought the company’s total Bitcoin holdings to 447,470 BTC. MicroStrategy’s total investment in Bitcoin now stands at approximately $27.97 billion, with an average purchase price of $62,503 per Bitcoin.

This latest purchase comes amid rising Bitcoin prices, which recently surpassed the $100,000 mark. The cryptocurrency found support at $91,000 and subsequently broke through the $100,000 level, showing signs of an upward breakout. While MicroStrategy’s recent purchase represents its continued commitment to Bitcoin, it also represents a slowdown in its acquisition strategy. In December 2024, the company purchased only 45,370 bitcoins, a sharp decline compared to the previous buying spree.

The Company uses proceeds from the issuance and sale of shares under convertible securities sales agreements to fund its Bitcoin acquisitions. Additionally, MicroStrategy has raised $2 billion from a perpetual preferred stock offering to fund further Bitcoin purchases, although the decision to proceed with this offering depends on market conditions. The company also revealed that it has adopted new accounting rules from the Financial Accounting Standards Board (FASB), which will now require Bitcoin gains and losses to be recorded in net income, adding greater volatility to its financial results.

Despite the uptrend in Bitcoin prices, MicroStrategy faces significant risks associated with its Bitcoin strategy. The company acknowledged the potential risks of concentrating most of its assets in Bitcoin, particularly due to the cryptocurrency’s price volatility and unpredictable regulatory environment. As of December 2024, MicroStrategy had $7.274 billion in debt, with annual interest expenses of $35.1 million. The company indicated that the sharp decline in the price of Bitcoin may lead to liquidity and credit risks, which may affect its ability to secure financing.

MicroStrategy’s aggressive Bitcoin strategy has attracted attention in the broader market. The company’s holdings are now worth about $44.3 billion, much higher than its initial investment. In addition, MicroStrategy recently joined the Nasdaq 100, boosting its visibility among blue chips and providing indirect exposure to Bitcoin through the Invesco QQQ Trust ETF.

Amid these developments, said Michael Saylor, co-founder of MicroStrategy Express His willingness to advise the incoming Donald Trump administration on digital asset policy. He indicated that he would be open to joining the Digital Assets Advisory Board to help formulate constructive policies in the cryptocurrency space.

Despite the risks, MicroStrategy remains a major player in the Bitcoin market as it continues to build its digital asset portfolio while overcoming the challenges of holding such volatile assets.