MicroStrategy (MSTR) Stock Market Mirrors Bitcoin (BTC) Performance Amid Ongoing BTC Purchases

MicroStrategy Inc. (NASDAQ: MSTR), a dot-com era software-oriented company that leverages the Bitcoin network, will be closing 2024

output: MicroStrategy (NASDAQ:MSTR) stock market value has mirrored Bitcoin price as the company continues to sell its class A common stocks to purchase more BTCs.

According to a form 8-k filed with the United States Securities and Exchange Commission (SEC) on December 30, MicroStrategy acquired about 2,138 BTC for around $209 million in cash between December 23 and December 29, 2024.

The company sold 592,987 shares under the sales agreement to facilitate the latest Bitcoin purchase. As a result of the latest investment, MicroStrategy has retained about $6.88 billion in shares to sell to strengthen its Bitcoin strategy in the long haul.

In late October, MicroStrategy entered into a sales agreement with TD Securities, Barclays Capital Inc., The Benchmark Company, Canaccord Genuity, and Cantor Fitzgerald to sell its class A common stocks to raise $21 billion to buy more Bitcoins.

Through the sales agent, MicroStrategy has managed to purchase Bitcoins for the eighth consecutive week, with little regard for the BTC price volatility. As of this writing, MicroStrategy held about 446,400 Bitcoins, which were acquired at an aggregate price of about $27.9 billion and an average price of $62,428, including fees and expenses.

Following the continued Bitcoin purchases, MicroStrategy has achieved a BTC Yield of 47.8 percent quarter-to-date (QTD), and 74.1 percent year-to-date (YTD). The company uses the BTC Yield as a measure that represents the percentage change period-to-period of the ratio between the company’s Bitcoin holdings and its shares outstanding.

Market Impact of MicroStrategy’s Bitcoin Move

Amid the ongoing stock sales by MicroStrategy to purchase more BTCs, the value of its stock market has continued to significantly mirror the performance of Bitcoin. According to the latest stock market data, MSTR stock has declined over 19 percent in the past month to trade at about $305 on Monday, during the early mid-New York session.

The company’s stock market has significantly been impacted by the ongoing Bitcoin price correction below the crucial support level of around $93k. Notably, Bitcoin price has spiked more than 14 percent in the past three weeks to trade at about $91,402 at the time of this writing. According to on-chain data analysis provided by IntoTheBlock, Bitcoin price could easily drop below $90k after losing the crucial support level above $95.5k.

However, a continued Bitcoin price correction of up to 30 percent from around $100k could set a precedent for a major bullish uproar in the first quarter of 2025. Moreover, more institutional investors have been purchasing Bitcoins as a hedge factor against inflation and ongoing fiat devaluations around the world.

Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

Steve Muchoki on LinkedIn

Marco T. Lanz on Xoutput: