MicroStrategy, a business intelligence firm and corporate
Bitcoin holder, has acquired an additional 15,350 BTC for approximately $1.5
billion, bringing its total holdings to 439,000 BTC.
Meanwhile, Microsoft shareholders voted against a proposal
to add Bitcoin to its balance sheet. The company’s board had recommended a
rejection, making the outcome unsurprising.
MicroStrategy Sells Shares for Bitcoin
The purchases occurred between December 9 and December 15 at
an average price of $100,386 per bitcoin, as disclosed in an 8-K filing with
the U.S. Securities and Exchange Commission on Monday.
During the same period, the company sold 3,884,712 shares,
raising $1.5 billion. MicroStrategy reported that $7.65 billion worth of shares
remain available for sale under its ongoing equity offering. This forms part of
a planned $42 billion capital raise, involving $21 billion each in equity and
fixed-income securities.
As of December 15, MicroStrategy holds Bitcoin valued at
over $45 billion at current market rates. The company’s total Bitcoin
investment stands at $27.1 billion, including fees and expenses, reflecting an
average purchase price of $61,725 per bitcoin. The holdings represent about
2.1% of Bitcoin’s capped supply of 21 million.
MicroStrategy has acquired 15,350 Bitcoin for $1.5 billion dollars and now holds a total of 439,000 BTC.Michael Saylor is RELENTLESS. pic.twitter.com/6PR4HnpyGb
— The ₿itcoin Therapist (@TheBTCTherapist) December 16, 2024
Investors Question Bitcoin Acquisition Strategy
The latest acquisition marks the sixth consecutive week of
significant Bitcoin purchases by MicroStrategy. The firm had announced the
acquisition of 21,550 BTC for $2.1 billion the prior week and $1.5 billion in
Bitcoin the week before that. These purchases have added $17.5 billion in
Bitcoin to its portfolio in six weeks, accounting for nearly 39% of its total
position.
Despite its growing Bitcoin reserves, MicroStrategy faces
skepticism over its equity and debt-funded acquisition strategy. The company’s
$92 billion market capitalization trades at a premium compared to its Bitcoin
net asset value, raising concerns among investors.
JUST IN: Microsoft shareholders vote AGAINST buying #Bitcoin as a treasury reserve asset.Losers… pic.twitter.com/TPqdxZylpB
— Bitcoin Archive (@BTC_Archive) December 10, 2024
Microsoft’s Bitcoin Proposal Rejected by Shareholders
Microsoft shareholders voted against the proposal to add
Bitcoin to the company’s balance sheet, in line with the board’s
recommendation.
Had the proposal passed, other companies could have followed
suit, potentially increasing Bitcoin adoption across corporate America and
driving up its price. This could have led to significant financial gains for
some investors.
The National Center For Public Policy Research, behind the
Microsoft proposal, has already indicated plans to target Amazon for a similar
proposal in April. As Bitcoin prices continue to rise, other companies might
consider adding Bitcoin to their balance sheets to avoid shareholder backlash.
Currently, companies with the most Bitcoin holdings are
those directly involved in the crypto industry, such as Coinbase and
MicroStrategy. However, some companies outside the crypto sector, like Tesla,
have also made Bitcoin acquisitions.
Recently, a few biotech companies
announced plans to purchase Bitcoin as a way to participate in its potential
upside and build shareholder value. If successful, this approach could gain
traction among other firms.
Michael Saylor of MicroStrategy suggested that Microsoft could benefit from buying up to $100
billion in Bitcoin annually.
This article was written by Tareq Sikder at www.financemagnates.com.
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