MicroStrategy Pauses Bitcoin Buying Streak, Holdings Remain at 471,107 BTC

After twelve consecutive weeks of accumulating Bitcoin, business intelligence firm MicroStrategy has paused its buying spree, leaving its total holdings at 471,107 BTC. The company, known for its aggressive Bitcoin investment strategy, made no new Bitcoin purchases between January 27 and February 2, according to a recent SEC filing.

A Massive Treasury: MicroStrategy's $44 Billion Bitcoin Bet

MicroStrategy's current Bitcoin holdings, worth over $44 billion, were acquired at an average price of $64,511 per coin, representing a total investment of approximately $30.4 billion, including fees and expenses. This makes the company the largest corporate holder of Bitcoin, owning more than 2.2% of the cryptocurrency's total 21 million supply.

Raising Capital: Equity Sales and a $42 Billion Plan

The pause in Bitcoin purchases coincides with MicroStrategy's ongoing efforts to raise capital through equity offerings. The company recently saw strong demand for its additional preferred stock plan, raising $563.4 million. As of January 26, approximately $4.35 billion worth of shares remained available for sale under its ambitious "21/21 plan," which targets a total capital raise of $42 billion.

Market Optimism Despite Recent Dip: Analysts Remain Bullish

Despite a recent market sell-off, partly attributed to concerns over potential tariff policies, financial services firm Mizuho Securities remains bullish on MicroStrategy. Mizuho maintains an "outperform" rating on the company's stock with a price target of $511, citing MicroStrategy's "accelerated track" in exceeding its capital raise targets. Mizuho also believes that Bitcoin has room to run another 30% in the next three years.

A Controversial Strategy: Valuation Concerns and Debt-Funded Purchases

MicroStrategy's aggressive Bitcoin acquisition strategy has not been without its critics. The company's $84.1 billion market cap trades at a significant premium to its Bitcoin net asset value, leading some investors to question its valuation and its reliance on equity and debt to fund Bitcoin purchases. The company has acquired approximately $20 billion worth of Bitcoin in the past few months alone.