TL;DR
- MicroStrategy acquired 10,107 BTC for approximately $1.1 billion, at an average price of $105,596 per bitcoin, further strengthening its position.
- The company now holds 471,107 BTC, representing over 2.2% of the total circulating bitcoin supply, consolidating its corporate leadership.
- MicroStrategy continues to execute its acquisition plan through stock sales, aiming to further increase its cryptocurrency capital.
MicroStrategy, the business intelligence firm that has become one of the largest corporate holders of bitcoin, has completed the purchase of 10,107 BTC for approximately $1.1 billion. This transaction, which took place between January 21 and 26, was made at an average price of $105,596 per bitcoin, according to a report filed with the SEC.
With this new acquisition, MicroStrategy increases its total holdings to 471,107 BTC, valued at over $46 billion. This purchase strengthens the company’s strategy, which has already invested a total of $30.4 billion in bitcoin, at an average price of $64,511 per coin. Thus, MicroStrategy is positioned as one of the largest holders of bitcoin, representing more than 2.2% of the total 21 million coin supply.
Financial Strategy and New Sources of Capital
The recent purchase is part of a broader strategy to fund ongoing bitcoin acquisitions. To finance this, MicroStrategy sold 2,765,157 of its own shares, raising funds also directed towards acquiring more cryptocurrencies. As of January 26, the company still has around $4.35 billion in shares to continue executing its “21/21 plan,” which aims to raise $42 billion to acquire more bitcoin.
Additionally, the company’s shareholders approved key amendments that will increase the number of authorized Class A and preferred shares. This will facilitate bitcoin acquisitions without additional restrictions. In a complementary move, MicroStrategy decided to redeem $1.05 billion in 2027 convertible bonds, using its own shares to cover the conversions. This step may be a strategy to reduce its debt and make bond-to-stock conversions more attractive, while navigating the uncertainty over the tax treatment of its bitcoin holdings under new FASB accounting rules.
Long-Term Focus
MicroStrategy’s focus remains long-term, with a firm commitment to bitcoin. In recent months, it has invested nearly $20 billion in the cryptocurrency, with consistent purchases over the past 12 consecutive weeks, signaling its unwavering belief in the asset’s future potential.
Despite a 5.2% decline in its stock value on Friday, which closed at $353.67, MicroStrategy has experienced an impressive 681% increase in its stock value over the past year, reflecting investor confidence in the company’s strategy.
