MicroStrategy Slows Bitcoin Purchases, Reporting Lowest Acquisition Since July 2024
Corporate Bitcoin investor MicroStrategy has slightly reduced its pace of Bitcoin (BTC) purchases, recording its smallest acquisition since July 2024.
From Dec. 16 to Dec. 22, MicroStrategy purchased 5,262 BTC for approximately $561 million, the company announced on Dec. 23. This brings its total Bitcoin holdings to 444,262 BTC, acquired at a total cost of $27.7 billion and an average purchase price of $62,257 per BTC.
MicroStrategy’s Latest BTC Acquisition
The recent purchase, with an average price of $106,662 per BTC, marks the highest price the company has paid for Bitcoin to date. Despite the reduced scale, the acquisition aligns with founder Michael Saylor’s strategy to accumulate Bitcoin, even at peak prices.
The 5,262 BTC bought in the latest round represents just 12% of MicroStrategy’s total Bitcoin acquisitions in December. In comparison, the firm purchased 42,162 BTC earlier in the month, valued at $4 billion.
This latest purchase marks a significant drop, 191% smaller than the Dec. 16 acquisition and 309% less than the Dec. 9 buy. It also mirrors the scaled-back acquisitions seen in June and July 2024, when only 169 BTC were purchased.
Potential Challenges Ahead
The slowdown comes amidst warnings from BitMEX co-founder Arthur Hayes, who has cautioned about potential market turbulence tied to U.S. President-elect Donald Trump’s inauguration. Hayes’ fund, Maelstrom, has already signaled plans to reduce positions and buy Bitcoin later at lower prices.
Additionally, speculation has emerged that MicroStrategy could enter a “blackout period” in January 2025. If true, this would temporarily halt the issuance of shares and convertible bonds, a key mechanism the firm uses to fund its Bitcoin purchases.
Saylor’s Continued Confidence in Bitcoin
Despite these factors, Michael Saylor remains steadfast in his Bitcoin strategy. Earlier in December, he reaffirmed his long-term commitment, stating, “I’m sure that I will be buying Bitcoin at $1 million a coin — probably $1 billion dollars a day of Bitcoin at $1 million a coin.”
MicroStrategy’s deliberate pace reflects a strategic recalibration as it navigates market dynamics while maintaining its position as one of the largest Bitcoin holders.
