MicroStrategy acquires another 2,530 BTC for $243 million, taking holdings to 450,000 BTC
Business intelligence firm and corporate bitcoin holder MicroStrategy acquired an additional 2,530 BTC for approximately $243 million at an average price of $95,972 per bitcoin between Jan. 6 and Jan. 12, according to an 8-K filing with the Securities and Exchange Commission on Monday.It follows the sale of a further 710,425 MicroStrategy shares during the same period for the same amount. As of Jan. 12, the company said approximately $6.53 billion worth of shares remained available for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities capital raise, targeting a total $42 billion for further bitcoin acquisitions.Earlier this month, the company expanded that 21/21 plan, announcing a potential $2 billion preferred stock offering in a strategy that could “unlock an institutional goldmine,” according to Benchmark equity analyst Mark Palmer. By turning to perpetual preferred stock, MicroStrategy could attract institutional investors such as insurance companies, pension funds and banks, Palmer said.The company now holds 450,000 BTC, worth over $40 billion. MicroStrategy’s total holdings were bought at an average price of $62,691 per bitcoin, a total cost of around $28.2 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. To put that in perspective, MicroStrategy holds around 2.1% of bitcoin’s total 21 million supply.Ten-week bitcoin buying streakMicroStrategy's latest announcement is now the tenth week in a row following news last Monday that it had acquired another 1,070 BTC for roughly $101 million in cash at an average estimated price of $94,004 per coin, and $209 million worth of bitcoin the week before.“Michael Saylor shared an update on MicroStrategy’s bitcoin purchase tracker yesterday, signaling the likelihood for another bitcoin acquisition,” BRN analyst Valentin Fournier said Monday. “The firm's purchase last Monday amounted to approximately $100 million, which had limited market impact, but underscores the firm’s ongoing demand.”MicroStrategy has acquired more than $18 billion worth of bitcoin over the past ten weeks alone, and its $81 billion market cap trades at a significant premium to its bitcoin net asset value, with some investors airing reservations about the firm's premium to NAV valuation and its equity and debt-funded bitcoin acquisition program in general.MicroStrategy shares closed down 1.1% at $327.91 on Friday, having gained more than 447% over the past year, TradingView. The stock is currently down 5.2% in pre-market trading on Monday.MSTR/USD price chart. Image: .Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.