MicroStrategy Boosts Bitcoin Holdings to 461,000 in $1.1 Billion Purchase

Business intelligence firm MicroStrategy has further solidified its position as a major Bitcoin holder, acquiring an additional 11,000 BTC for approximately $1.1 billion. The purchase, executed between January 13 and 20, was made at an average price of $101,191 per Bitcoin, according to a filing with the Securities and Exchange Commission (SEC).

This latest acquisition follows the sale of over 3 million MicroStrategy shares during the same period, generating the funds for the Bitcoin purchase. The company has approximately $5.42 billion worth of shares remaining for sale as part of its broader plan to raise $42 billion for Bitcoin acquisitions through a combination of equity and fixed-income securities. This plan also includes a potential $2 billion preferred stock offering, which could attract institutional investors like insurance companies and pension funds.

With this latest purchase, MicroStrategy now holds a substantial 461,000 BTC, currently valued at over $48 billion.

The company’s total Bitcoin holdings were acquired at an average price of $63,610 per Bitcoin, representing a total investment of approximately $29.3 billion, including fees and expenses, according to co-founder and executive chairman Michael Saylor. This substantial holding represents more than 2% of Bitcoin’s total circulating supply of 21 million.

This acquisition marks the eleventh consecutive week of Bitcoin purchases for MicroStrategy. The company recently acquired 2,530 BTC for roughly $243 million and an additional $101 million worth of Bitcoin the week prior. Saylor had previously hinted at another Bitcoin acquisition, which was delayed due to the Martin Luther King Jr. Day holiday and the presidential inauguration.

Over the past few months, MicroStrategy has acquired approximately $19 billion worth of Bitcoin. The company's market capitalization of $97.7 billion trades at a significant premium to its Bitcoin net asset value. This premium has led some investors to express concerns regarding the company's valuation and its debt-funded Bitcoin acquisition strategy.

MicroStrategy shares closed up 8% at $396.50 on Friday, marking a substantial gain of over 693% over the past year, according to TradingView. U.S. markets were closed on Monday.