TLDR
MicroStrategy added 15,400 BTC ($1.5B) to holdings in early December 2023
Company now owns over 402,100 BTC at average price of $56,658 per coin
Plans to raise $21B through stock sales by 2027 for more Bitcoin purchases
Mining companies MARA and Riot shifting to hold rather than sell Bitcoin
Bitcoin trading around $95,180, consolidating between $91,000-$98,000
Business intelligence firm MicroStrategy has purchased an additional 15,400 Bitcoin between November 25 and December 1, 2023, marking its fourth consecutive week of cryptocurrency acquisitions. The company paid approximately $95,976 per token for this latest purchase, according to their SEC filing.
The purchase was funded by proceeds from a recent stock sale where MicroStrategy sold 3.7 million MSTR shares, generating about $1.5 billion. This move aligns with the company’s broader strategy to raise $21 billion through stock sales by 2027, specifically for Bitcoin investments.
With this latest addition, MicroStrategy’s total Bitcoin holdings have reached 402,100 BTC, acquired at an average purchase price of $56,658 per coin. The total value of their Bitcoin treasury stands at approximately $38 billion at current market prices.
The company’s purchasing power remains robust, with Bloomberg data indicating approximately $11.3 billion remaining in their at-market share program. This suggests MicroStrategy maintains substantial capacity for future Bitcoin acquisitions.
The strategy appears to be influencing other players in the cryptocurrency space, particularly mining companies. MARA Holdings, a prominent crypto mining firm, revealed its own Bitcoin accumulation strategy, having purchased $618 million worth of Bitcoin in the past two months.
MARA is taking additional steps to increase its Bitcoin holdings, announcing a $700 million convertible senior note offering. Part of these funds will be directed toward further Bitcoin purchases, indicating a shift in strategy from immediate selling of mined Bitcoin to long-term holding.
This strategic pivot comes in response to challenges faced by mining companies following the Bitcoin halving in April. The event, which reduced mining rewards, has prompted companies to reconsider their approach to managing Bitcoin holdings.
Despite experiencing a 44% decline earlier in the year, MARA’s stock has shown resilience, currently trading up 8% year-to-date. This recovery suggests market confidence in their new treasury strategy.
Riot Platforms, another major mining company, has also announced plans to pause the sale of mined Bitcoin. This decision comes after the company experienced a 20% decline in share value this year, following a steeper 59% drop in September.
The current Bitcoin market shows consolidation patterns, with prices moving between $91,000 and $98,000 over the past ten days. At the time of reporting, Bitcoin trades at $95,180, showing a 1.6% decrease in 24-hour trading.
The market continues to watch the $100,000 price level, which remains unbreached despite Bitcoin reaching a record high of $99,540. This psychological barrier has proven resistant despite increased institutional buying.
MicroStrategy’s consistent purchasing strategy has established them as the largest corporate holder of Bitcoin. Their average purchase price of $56,658 per Bitcoin suggests a paper profit on their holdings, given current market prices.
The company’s approach represents a clear shift from traditional corporate treasury management. By converting proceeds from stock sales directly into Bitcoin, MicroStrategy maintains steady pressure on their acquisition strategy.
Recent market data indicates sustained trading volume in the Bitcoin market, even as prices consolidate below the $100,000 mark. This suggests ongoing institutional interest in cryptocurrency investments.
The movement of mining companies toward holding rather than selling Bitcoin represents a market-wide shift in strategy. This change could affect Bitcoin’s available supply on exchanges, potentially influencing future price dynamics.
