MicroStrategy Acquires $22.07 Billion Worth of Bitcoin in 2024, Achieves 74.3% Yield
MicroStrategy, a leading enterprise analytics firm, announced it purchased 258,320 BTC at about $85,450 per token. Notedly, the total procurement throughout 2024 amounted to $22.07 billion, which resulted in a 74.3% yield on its cryptocurrency holdings. It is worth noting that a greater portion of the procurements spree happened within the last few weeks of the previous year. Between the first week of November and the end of 2024, MicroStrategy consistently purchased BTC for eight consecutive weeks. Interestingly, the investment firm began the previous year with 189,150 BTC and concluded the year with a whopping 140,630 tokens, equating to 385 Bitcoin/day. Therefore, it marks a significant milestone for the company, which remains the largest institutional Bitcoin holder globally. The news, confirmed by MicroStrategy’s Executive Chairman Michael Saylor via a tweet, underscores the firm’s dedication to its Bitcoin-focused treasury strategy. Saylor highlighted the financial results, attributing the impressive yield to the cryptocurrency’s strong performance over the past year. Part of the Chairman’s tweet read: “At $100K/BTC, this translates to shareholder value creation of $14.06 billion for the year or $38.5 million per day.” $MSTR acquired 258,320 BTC for $22.07B (~$85,450/BTC) in 2024 and achieved a 74.3% BTC Yield, starting the year with 189,150 BTC and realizing a BTC Gain of 140,630 BTC (385/day). At $100K/BTC, this translates to shareholder value creation of $14.06B for the year or $38.5M/day. — Michael Saylor⚡️ (@saylor) January 7, 2025 Institutional Adoption of Bitcoin Gains Momentum MicroStrategy’s aggressive Bitcoin acquisition strategy aligns with broader trends in institutional adoption of cryptocurrencies. In 2024, Bitcoin saw a resurgence in market value, breaching the $100,000 threshold and spurring increased interest from corporate and retail investors alike. Analysts suggest MicroStrategy’s success could encourage other firms to explore cryptocurrency investments. However, the strategy also carries risks, including Bitcoin’s price volatility and regulatory uncertainties. Critics have questioned the sustainability of such a concentrated investment approach, warning that reliance on a single asset could expose the company to significant financial risks. Focus on Long-Term Value Despite potential risks, MicroStrategy remains committed to its Bitcoin strategy. Saylor has consistently advocated for Bitcoin as a superior store of value, often referring to the cryptocurrency as “digital gold.” His public endorsements and the company’s ongoing investments have made MicroStrategy a prominent voice in the cryptocurrency industry. Looking ahead, the company plans to continue its Bitcoin acquisition strategy, emphasizing long-term value creation over short-term market fluctuations. Saylor’s leadership and the firm’s substantial returns in 2024 may solidify Bitcoin’s position as a viable asset class for institutional portfolios. This development highlights the evolving role of cryptocurrencies in corporate finance as more firms consider Bitcoin as a strategic asset amid changing market dynamics.
MARA and Hut 8 Buys $1.63B in Bitcoin
Bitcoin mining giant MARA Holdings has invested significantly in cryptocurrency, acquiring 15,574 BTC for $1.53 billion. This purchase, announced on Thursday, marks one of the largest single acquisitions by a mining firm and underscores the company’s confidence in Bitcoin’s long-term value. The acquisition, which occurred over the past few months, aims to bolster MARA’s reserves as part of its strategy to navigate market volatility and sustain operations. Relaying its recent purchase on X, the mining outlet stated that the funds for the BTC acquisition stemmed from the $1.925 billion it realized from 0% convertible notes in November and December. Part of the tweet read: “Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 15,574 BTC for ~$1.53 billion at ~$98,529 per #bitcoin and repurchased ~$263 million in aggregate principal amount of its existing convertible notes due 2026, and expects to use the remaining proceeds to acquire additional bitcoin” Meanwhile, following the recent purchase, MARA’s total BTC holdings soared to about 44,394 BTC, valued at approximately $4.45 billion. Additionally, the mining firm’s quarterly return was about 22.5%, while the yearly yield reflected roughly 60.9%. MARA raised $1.925 billion from 0% convertible notes in November and December. Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 15,574 BTC for ~$1.53 billion at ~$98,529 per #bitcoin and repurchased ~$263 million in aggregate principal amount… pic.twitter.com/ycGRk9BYfv — MARA (@MARAHoldings) December 19, 2024 Hut 8 Completes $100 Million Bitcoin Purchase In a parallel development, Canadian mining firm Hut 8 has reached a significant milestone, investing $100 million in Bitcoin to expand its reserves. The purchase, announced on Thursday, marks a key step in Hut 8’s strategy to enhance its digital asset portfolio and strengthen its position in the competitive mining landscape. According to the publicized document that relayed the fresh BTC procurement, the Canadian-based company spent an average of $101,710 per BTC to increase its coin holdings to about 10,096 BTC. Consequently, the mining firm’s total Bitcoin stores valuation is stated to be over $1 billion. Market Impact and Outlook The combined purchases by Marathon and Hut 8 signal growing confidence among mining firms in Bitcoin’s potential, even as regulatory scrutiny and market fluctuations persist. Market experts note that such large-scale acquisitions could influence market dynamics, potentially driving demand and impacting Bitcoin’s price stability. As mining firms continue to invest heavily in digital assets, the industry remains focused on navigating regulatory challenges and scaling operations to meet rising demand. MARA and Hut 8 have emphasized their commitment to sustainable practices and operational efficiency as they expand their portfolios. Their strategic moves highlight the evolving role of mining firms not just as producers but as key stakeholders in the cryptocurrency ecosystem. It is worth noting that the recent purchase followed Bitcoin’s slight displacement that saw it plummet below $100,000 at some point. At the time of press, BTC is changing hands at about $100,500, reflecting a 3.4% decline in the past 24 hours. Within the same timeframe, the token reflected price extremes ranging between $98,839.87 and $104,893.
Metaplanet Boosts Bitcoin Holdings with New $1.2 Million Purchase, Shares Surge 21%
Institutional adoption of cryptocurrencies has recently gained momentum.
‘Asia’s MicroStrategy’ Metaplanet Makes Another Million-Dollar Bitcoin Purchase
Public companies around the globe are increasingly embracing Bitcoin.
