MicroStrategy Continues to Buy Bitcoin, Boosting Reserves to $40 Billion

MicroStrategy, the world’s largest Bitcoin-holding company, has announced the acquisition of 21,550 BTC valued at approximately $2.1 billion. The purchases were made between December 2 and December 8, bringing the company’s total Bitcoin holdings to 423,650 BTC, worth roughly $40 billion.

This marks the fifth consecutive week that MicroStrategy has expanded its Bitcoin portfolio. Previously, the company spent $1.5 billion to acquire 15,400 BTC at an average price of $95,976 per coin.

According to filings with the U.S. Securities and Exchange Commission (SEC), the funds for this purchase came from issuing 5.4 million shares. The company retains the capacity to raise over $9 billion more through stock sales as part of its $42 billion capital-raising plan over three years. This plan is evenly split between $21 billion from equity issuance and $21 billion from fixed-income securities.

Michael Saylor, the company’s co-founder and chairman, stated that the average purchase price for its entire Bitcoin holdings is $60,324 per BTC, with a total cost of approximately $25.6 billion, including transaction fees. As of December 9, the company’s Bitcoin yield—a metric measuring the percentage change in Bitcoin holdings relative to diluted shares—has risen by 68.7% since the start of the year.

Related: MicroStrategy Holds Over 1% of Total Bitcoin Supply

Earlier this morning, a sharp market correction wiped $1.7 billion from the market as Bitcoin unexpectedly dropped to $95,100. This sudden decline led to a 20-30% decrease in the value of many altcoins.