MicroStrategy Keeps Up Bullish Momentum, Acquires 2,138 BTC – What Lies Ahead for Bitcoin in January 2025?
MicroStrategy recently bought an additional 2,138 Bitcoins ($209 million) towards the end of the year, boosting its total holdings to 446.4K coins valued at over $41 billion.
As a trailblazer in BTC corporate treasury management, the company currently possesses 2.12% of the total BTC supply, greatly benefiting MSTR shareholders.
Year-to-date, MSTR saw an impressive surge of 342%, while BTC marked a rise of 122% over the same period.
This implies that in 2024, investors in MSTR outperformed those in BTC by almost triple. Remarkably, both assets exceeded the returns of gold and US stocks (S&P 500) which posted gains of 26% and 24% respectively for the year.
So, what could be on the horizon for BTC and MicroStrategy in 2025?
The company intends to widen its equity issuance program to 10 billion MSTR shares to expedite its acquisition of BTC. Many analysts foresee that this move could drive up the value of BTC.
In fact, Blockware has projected potential peaks for BTC in 2025 ranging from $225K to $400K, should corporate adoption of BTC in treasuries accelerate in parallel with the establishment of a strategic US BTC reserve.
Nevertheless, in a ‘bear case’ scenario, Blockware team suggests a more conservative estimate of $150K for BTC. On the other hand, QCP Capital anticipates a subdued performance for BTC entering January due to seasonal trends. If this unfolds, the short-term gains of MSTR might be limited until the market rebounds.
Currently, MSTR has retraced by 45% from its recent high of $543 and is holding its ground around $300 at present. This comes after BTC witnessed a sharp drop from $108K to $92K.
Further weakening could present attractive buying opportunities for MSTR, particularly if the market picks up in January.