MicroStrategy acquires 55,500 Bitcoin for $5.4 billion

Bernstein analysts expect MicroStrategy's Bitcoin ownership to grow from 1.7% of the circulating supply to 4% over the next decade.

Key Takeaways

• MicroStrategy acquired an additional 55,500 BTC as part of its strategy to increase Bitcoin holdings.
• Bernstein projects MicroStrategy's Bitcoin holdings could reach 830,000 BTC by 2033, valued at $1 million per coin.

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MicroStrategy said Monday it had acquired an additional 55,500 Bitcoin for $5.4 billion at an average price of $97,862 per coin. The announcement comes after the company successfully completed its senior note offering last Friday.

MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM

— Michael Saylor⚡️ (@saylor) November 25, 2024

Having added over 130,000 BTC to its portfolio this month, MicroStrategy now holds a total of 386,700 BTC, valued at approximately $38 billion at current market prices. The latest acquisition of $5.4 billion is the company’s largest purchase to date.

MicroStrategy is ahead of schedule in its plans to raise $42 billion over the next three years to finance its Bitcoin acquisitions. The company has already secured $3 billion in convertible debt and $6.6 billion in equity this month.

Bernstein analysts predict MicroStrategy’s Bitcoin holdings will increase from 1.7% to 4% of the circulating supply by 2033. Analysts raise their price target for shares of MicroStrategy (MSTR) to $600 by the end of 2025.

The update follows a rapid stock price increase driven by the company’s aggressive Bitcoin investment strategy. MicroStrategy stock has soared over 560% this year, outpacing most S&P 500 indexes, according to data from Yahoo Finance.

Bernstein projects MicroStrategy could hold approximately 830,000 BTC by the end of 2033, valued at $830 billion at a price of $1 million per coin.

Analysts believe that favorable regulatory conditions under the incoming Trump administration, growing institutional adoption, and macroeconomic factors such as low interest rates and inflation risks support a sustained bull market for Bitcoin.

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