MicroStrategy Adds $1.1B Bitcoin, Now Holds Over 471,000 BTC
MicroStrategy, the business intelligence firm famous for its aggressive Bitcoin strategy, has once again significantly increased its holdings. The company announced on Monday that it acquired an additional 10,107 Bitcoin, worth approximately $1.1 billion, between January 21 and January 26. This latest purchase brings MicroStrategy's total Bitcoin holdings to a staggering 471,107 BTC, further solidifying its position as the largest corporate holder of the cryptocurrency.
Funding the Future: Equity Sales and a $42 Billion Plan
The recent acquisition, disclosed in an SEC filing, was made at an average price of $105,596 per Bitcoin. Interestingly, this purchase coincides with the sale of 2,765,157 MicroStrategy shares during the same period, also for approximately $1.1 billion. This suggests the company is actively managing its capital structure to facilitate its Bitcoin strategy. MicroStrategy still has around $4.35 billion worth of shares available for sale under its ambitious "21/21 plan," which aims to raise a total of $42 billion through equity and fixed-income securities offerings, primarily for Bitcoin acquisitions.
Shareholder Approval and Debt Management: Paving the Way for More Bitcoin
Shareholders recently approved two amendments that will allow MicroStrategy to increase the number of authorized Class A common stock and preferred stock, providing further flexibility for future Bitcoin purchases. Additionally, the company recently opted to redeem $1.05 billion worth of its 2027 convertible notes, potentially as a way to manage debt and encourage noteholders to convert to equity. This comes as the company faces uncertainty around the tax treatment of its holdings under new FASB accounting rules and the 2022 Inflation Reduction Act.
Michael Saylor's Vision: Over 2.2% of Bitcoin's Total Supply
MicroStrategy's co-founder and executive chairman, Michael Saylor, confirmed that the total holdings were acquired at an average price of $64,511 per Bitcoin, representing a total investment of approximately $30.4 billion, including fees and expenses. To put the scale of MicroStrategy's holdings into perspective, the company now owns more than 2.2% of Bitcoin's total 21 million supply.
Twelve Weeks and Counting: A Relentless Buying Spree
This latest purchase marks the twelfth consecutive week of Bitcoin acquisitions by MicroStrategy, highlighting the company's unwavering commitment to its Bitcoin-centric treasury strategy.