MicroStrategy Adds 11k Bitcoins to Treasury in Bold $1.1B Investment

MicroStrategy Inc. has expanded its Bitcoin treasury, purchasing 11,000 Bitcoins for $1.1 billion strategically between January 13 and January 20, 2025. This purchase strengthens the company’s position as a top corporate Bitcoin investor. With this addition, MicroStrategy now holds 461,000 Bitcoins, valued at approximately $47 billion at current market prices.

MicroStrategy Expands Bitcoin Holdings With $21B Raised

The company funded the acquisition by selling over 3 million shares, raising $21 billion. This move aligns with MicroStrategy’s broader strategy of leveraging global capital markets to bolster its cryptocurrency reserves. The company has proposed an amendment to increase its Class A common stock from 330 million to 10.3 billion, which will be decided in an upcoming shareholder vote.

MicroStrategy’s average purchase price per Bitcoin now stands at $63,610, with an unrealized profit of about $17.7 billion. Given the firm’s consistent returns, including a reported BTC yield of 1.69% in early January 2025, shareholders are expected to favor the amendment. The amendment would provide the firm with additional capital flexibility for future Bitcoin acquisitions if approved.

MicroStrategy’s aggressive Bitcoin strategy has influenced other corporations to adopt similar approaches to hedge against inflation. Metaplanet Inc., a Tokyo-based company, has recently embraced Bitcoin investments inspired by MicroStrategy’s lead. Meanwhile, KULR Technology Group Inc. announced its Bitcoin acquisition, purchasing $8 million worth to hold 510 coins in total.

Corporations’ broader adoption of digital assets has contributed to a significant reduction in Bitcoin supplies on centralized exchanges. Centralized exchanges hold about 2.19 million Bitcoins, down from over 2.7 million a year ago. This trend underscores a growing preference among institutional investors for long-term Bitcoin reserves.

U.S. States Explore Bitcoin as Reserve Asset

Institutional interest in Bitcoin remains strong, driven by its growing acceptance as a strategic reserve asset. U.S. states like Texas, Massachusetts, and Utah are considering Bitcoin reserves, reflecting wider adoption at the governmental level. Speculation suggests the U.S. may implement a national Bitcoin reserve strategy under the Trump administration.

Bitcoin prices remain bullish, supported by reduced supply and increased demand from corporate and institutional investors. With traditional assets like gold ETFs losing appeal, Bitcoin’s position as a key investment option strengthens.

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