Bitcoin Price Drops After MicroStrategy’s Bitcoin Acquisition
Bitcoin’s price fell by 2% within an hour after MicroStrategy announced its eighth consecutive weekly BTC acquisition. The market reaction was less enthusiastic about the firm’s latest Bitcoin purchase, dragging BTC down to $92,900 at the time of writing — a 10% drop from its record high of over $108,000. Similarly, the company shares are down 4% at pre-market trading to $330, according to Google Finance data.
MicroStrategy’s Bitcoin Acquisition
On Dec. 30, MicroStrategy Chairman Michael Saylor revealed that the company purchased 2,138 BTC for $209 million. This marks the firm’s smallest acquisition in the last eight weeks, during which it accumulated approximately 195,000 BTC at a total cost of $18 billion.
The company has primarily funded these acquisitions using its at-the-market (ATM) program, which raises funds through the issuance of shares or securities. As of Dec. 30, MicroStrategy still has about $6.8 billion worth of shares available for sale that could be used to fund future BTC purchases.
Impact of Bitcoin Acquisitions
- MicroStrategy’s aggressive Bitcoin acquisitions have increased its reserves to 446,400 BTC, making it the largest corporate holder of the top crypto.
- Based on current market prices, these holdings are worth approximately $41.8 billion.
- The firm’s Bitcoin holdings have generated a quarter-to-date return of 47.8% and a year-to-date yield of 74.1%.
