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MicroStrategy Buys into the Bitcoin Dip with $2.1 Billion Investment

Timothy St. John•Tuesday, December 10, 2024•2 min read

Bitcoin (BTC) dropped to $95K today, and business software company MicroStrategy (MSTR) has doubled down on its stake in Bitcoin by purchasing 21,550 BTC.

MicroStrategy is investing heavily in Bitcoin.
MicroStrategy is benefitting from Bitcoin’s rise.

Now at $95,996 (BTC/USD), Bitcoin is lower than it has been in days, having lost 1.62% of its value in the last 24 hours. MicroStrategy is taking advantage of the lower price to  invest in a big way, and they have committed $1.2 billion more to their Bitcoin investment.

They were already the largest corporate Bitcoin holder in the world, but now MicroStrategy is so far out in front of the competition in this category that there are no close competitors. They are looking to be in the Bitcoin game for a while, and so far, a lot of their investments have paid off. Bitcoin climbed higher in the last few weeks than it has ever been, breaking record after record in a climb to $100K.

Now, MicroStrategy holds 423,650 BTC.

How MicroStrategy Stock Has Fared

It can be very dangerous for a public business to invest so heavily in another product or asset that does not belong to them. However, as Bitcoin’s price has increased over the last few weeks, MicroStrategy stock has shot up.

Their stock price is currently up 1.57% today, and in the last three months, the stock price has more than doubled. In fact, it has grown from $129 to its current price of $371, an increase of 287%.

It looks like Bitcoin will continue to grow, and analysts are already expecting a price of $125K soon. If that happens, then MicroStrategy will continue to benefit. So far, their investment strategy has paid off, but they are under great pressure from investors. Many market analysts are criticizing their heavy Bitcoin investment as well, in part because it is a single investment rather than a diversified one and partly because what they are doing is very different from other companies’ investment strategies.

 

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ABOUT THE AUTHOR See More
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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