MicroStrategy Inc., led by co-founder Michael Saylor, has made headlines by purchasing an impressive $243 million worth of Bitcoin, marking its 10th consecutive weekly buy. The Virginia-based firm now holds over 2% of all Bitcoin ever created, valued at around $41 billion. Between January 6 and January 12, MicroStrategy acquired 2,530 Bitcoin at an average price of about $95,972 each. To finance further purchases, the company aims to raise $42 billion by 2027 through stock sales and convertible debt offerings. Despite a 3% decline in Bitcoin this year, MicroStrategy shares have seen a 13% increase, closing at $327.91, though they remain below their peak of around $474.
MicroStrategy Continues Aggressive Bitcoin Purchases, Holding 2% of Total Supply
MicroStrategy Inc. is making headlines again after purchasing an impressive $243 million worth of Bitcoin. This marks the tenth consecutive week that the firm, known for its ambitious strategy, has increased its Bitcoin holdings. The Tysons Corner, Virginia-based enterprise software company now owns over 2% of all Bitcoin that will ever exist, with a total investment valued at approximately $41 billion.
Recent filings with the US Securities and Exchange Commission revealed that MicroStrategy acquired 2,530 Bitcoin tokens at an average price of $95,972 from January 6 through January 12. Despite a slight slowdown in the pace of purchases in recent weeks, their commitment to a buy-and-hold strategy initiated back in 2020, led by co-founder Michael Saylor, remains strong.
Future Plans for Capital Raise
MicroStrategy has ambitious plans to raise $42 billion in capital by 2027 through sales of stock and convertible debt offerings specifically for purchasing additional Bitcoin. In just three months since announcing this plan, the company has already met two-thirds of its equity goals.
Hedge funds have shown increasing interest in MicroStrategy, often engaging in convertible arbitrage strategies. This involves buying bonds and short-selling shares, capitalizing on the underlying stock’s price volatility.
Looking Ahead
The firm plans to hold a shareholder vote on January 21 to increase the authorized number of shares of its Class A common stock from 330 million to a staggering 10.3 billion. Furthermore, MicroStrategy aims to raise an additional $2 billion through perpetual preferred stock offerings.
As for stock performance, MicroStrategy shares have risen 13% this year, closing at $327.91 on Friday. However, they remain below their all-time high of about $474, recorded in November. Meanwhile, Bitcoin’s price has seen a modest drop of 3% this year after an impressive rally of 120% in 2024.
This continued investment in Bitcoin not only demonstrates MicroStrategy’s commitment to the cryptocurrency Market but also underscores the ongoing trend of large corporations embracing digital assets.
Tags: MicroStrategy, Bitcoin, cryptocurrency investments, stock Market, hedge funds.
What did MicroStrategy recently do with bitcoin?
MicroStrategy bought $243 million worth of bitcoin after selling some of its shares.
Why did MicroStrategy invest in bitcoin?
MicroStrategy believes in bitcoin as a valuable asset that will increase in value over time.
How does this purchase benefit MicroStrategy?
Buying bitcoin could help MicroStrategy improve its financial strength and potentially raise its stock value.
How much bitcoin does MicroStrategy now own?
With this latest purchase, MicroStrategy holds a significant amount of bitcoin, adding more to its existing holdings.
Is this a common practice for companies?
Not many companies invest heavily in bitcoin like MicroStrategy, but more are considering it due to its growth potential.
