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.
Michael Saylor Proposes Bitcoin Integration to Microsoft Board
Michael Saylor, executive chairman of MicroStrategy and prominent Bitcoin advocate, has urged Microsoft’s board to consider adopting Bitcoin as part of its business strategy. In a recent discussion, Saylor emphasized Bitcoin’s potential to enhance Microsoft’s financial systems and product offerings. He noted that adopting Bitcoin would position the tech giant to capture almost $5 trillion in market capitalization. Aside from spiking the American-based valuation, Saylor proposed that Bitcoin adoption aligns with Microsoft’s innovation goals. In addition, it would address financial stability and global currency risks. “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” the MicroStrategy CEO asserted $5 Trillion Market Opportunity In the video clip circulating, Saylor urged Microsoft to convert its assets into BTC. He highlighted cash flows, stock buybacks, debts, and dividend payouts among the convertible assets. Estimating possible returns from Bitcoin investments, Saylor noted that in a scenario where the flagship crypto hit $1.7 million by 2034, chances abound that the tech giant valuation could reach $4.9 trillion. Aside from the impacts on Microsoft’s entire valuation, the chairman mentioned that with Bitcoin investments, MicroStrategy could add about $584 per share to Microsoft’s stock price. In his words, Saylor noted that such addition would happen over the next ten years. While the board has not issued any public response to Saylor’s proposal, the discussion has sparked debate within the tech and financial sectors about the role of cryptocurrencies in mainstream technology platforms. Annual Bitcoin Investment Strategy Moreover, citing a feasible investment plan, Saylor proposed an annual strategy involving a $100 billion allocation for BTC investments. According to him, engaging in such practice sounds more profitable than repurchasing company stock or holding on to its bonds. The executive chairman stated, “What if you could buy a $100 billion company growing faster than Microsoft for one times revenue? What if you could keep doing it every single year?” MicroStrategy’s Bitcoin Push Saylor’s appeal to Microsoft aligns with his broader mission to promote Bitcoin adoption among enterprises. Under Saylor’s leadership, MicroStrategy has become one of the largest corporate holders of Bitcoin, with about 402,100 BTC reserves. The company views Bitcoin as a hedge against inflation and a key asset for long-term growth. Saylor’s advocacy has earned both praise and criticism. Supporters view him as a visionary in the cryptocurrency space. On the other hand, critics question fluctuations and regulatory challenges associated with Bitcoin.
Michael Saylor Says BTC Price Could Hit $1.3M
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