MicroStrategy's stock rallied over 5% on Friday, propelled by the company's relentless pursuit of Bitcoin accumulation and the overall bullishness surrounding the world's largest cryptocurrency.
The software firm, now widely recognized as the world's largest corporate holder of Bitcoin, has embraced an aggressive strategy of using debt and equity financing to amass a massive Bitcoin hoard. As of December 15th, MicroStrategy held approximately 439,000 bitcoins, acquired at an average cost of $61,725 per bitcoin, totaling over $27.1 billion.
MicroStrategy's bold approach mirrors that of bitcoin miner Riot Platforms, which has also been strategically deploying capital raised through debt and equity offerings to scoop up more Bitcoin. This strategy has paid off handsomely for MicroStrategy, with its stock surging an astonishing 2,500% since the start of 2020 when it first began accumulating the digital asset.
The company's Bitcoin holdings now exceed the estimated holdings of Satoshi Nakamoto, the pseudonymous creator of Bitcoin, further solidifying its status as a trailblazer in institutional Bitcoin adoption. This milestone comes as Bitcoin's price soared above $107,000 on December 16th, fueled by expectations of interest rate cuts by the Federal Reserve and a crypto-friendly regulatory environment under the incoming Trump administration.
However, speculation is brewing that MicroStrategy's Bitcoin buying frenzy may temporarily pause in January due to a potential blackout period related to its upcoming earnings report. Nonetheless, the company remains steadfast in its commitment to Bitcoin, outlining an ambitious three-year capital market strategic plan to raise $42 billion, primarily for further Bitcoin acquisitions.