MicroStrategy Buys $243M in Bitcoin Amid Market Turmoil; MSTR Stock Tumbles
MicroStrategy, the world’s largest corporate Bitcoin holder, has once again expanded its crypto portfolio. The company, led by Executive Chairman Michael Saylor, announced a $243 million Bitcoin purchase, bringing its total holdings to an astounding 450,000 BTC. However, the market’s reaction has been mixed, with MSTR stock seeing a notable drop following a broader cryptocurrency market crash.
Key Highlights
- $243 Million Bitcoin Purchase: MicroStrategy acquired 2,530 BTC at an average price of $95,972 per coin.
- BTC Holdings Surge: The company’s total Bitcoin holdings now stand at 450,000 BTC, purchased for $28.2 billion.
- MSTR Stock Declines: MicroStrategy’s stock fell over 4% in pre-market trading as Bitcoin’s price dropped below key support levels.
MicroStrategy’s Latest Bitcoin Buy
In a press release dated January 13, MicroStrategy disclosed its latest acquisition of 2,530 BTC. The purchase, completed between January 6 and 12, was financed through proceeds from share sales under a previously announced agreement.
Michael Saylor emphasized the company’s continued commitment to Bitcoin, noting a yield of 0.32% in 2025 year-to-date and an impressive 74.3% yield in 2024.
With this acquisition, MicroStrategy’s Bitcoin holdings have reached 450,000 BTC, acquired for $28.2 billion at an average price of $62,691 per coin. The company has also hinted at plans to raise up to $2 billion through stock offerings to fund future Bitcoin purchases.
Market Reaction: MSTR Stock Takes a Hit
Despite the bullish announcement, MSTR shares tumbled by over 4% in pre-market trading on Monday, reflecting broader market unease. The drop follows Bitcoin’s price slipping below $91,000, with a 24-hour low of $90,183.
- BTC Price Performance: Bitcoin’s price decline was accompanied by a 151% surge in trading volume, signaling heightened volatility.
- Investor Sentiment: A stronger-than-expected U.S. jobs report and concerns over inflationary policies under the incoming administration have increased uncertainty, prompting cautious investor behavior.
Looking Ahead
MicroStrategy remains committed to its Bitcoin-centric strategy, even as market volatility continues to test investor confidence. With plans to raise significant capital for further acquisitions, the company’s moves are likely to remain a focal point in the cryptocurrency space.
For now, both crypto enthusiasts and market analysts will keep a close watch on Bitcoin prices and their impact on MicroStrategy’s financial health and stock performance.