MicroStrategy Snaps Up More Bitcoin. How It Plans to Finance Future Purchases. — Barrons.com

By Mackenzie TatananniMicroStrategy announced Monday that it had bought even more Bitcoin and revealed it would sell stock to raise capital and fund future purchases of the cryptocurrency.MicroStrategy's latest purchase brings its total holdings to more than 470,000 Bitcoins, the software company said in a filing with the Securities and Exchange Commission.Between Jan. 21 and Sunday, MicroStrategy acquired around 10,107 Bitcoins for $1.1 billion in cash, or roughly $105,596 per Bitcoin, the company said. It now owns around 471,107 Bitcoins, acquired for $30.4 billion.The company also announced that it intends to offer, in a public offering, 2.5 million shares of its "perpetual strike preferred stock." The net proceeds from the offering will go toward "generate corporate purposes" including working capital and the acquisition of more Bitcoin.MicroStrategy was founded in 1989 and was once primarily an enterprise software company. It has been buying the digital currency since 2020 and now brands itself "the world's first and largest Bitcoin treasury company.""We are a publicly traded company that has adopted Bitcoin as our primary treasury reserve asset," the company wrote in its latest press release. "By using proceeds from equity and debt financings, as well as cash flows from our operations, we strategically accumulate Bitcoin and advocate for its role as digital capital."MicroStrategy stock declined last week after President Donald Trump didn't immediately spell out his plans for cryptocurrencies, despite promising a strategic Bitcoin reserve and less stringent regulations while on the campaign trail. Some details emerged Thursday in the form of an executive order, though the mandate fell short of establishing any sort of reserve.Shares of MicroStrategy fell 6% to $332.50 on Monday as part of a broad selloff in tech stocks. The sector was reeling after a chatbot created by DeepSeek, a Chinese artificial intelligence start-up, became the most-downloaded free app in Apple's App Store, sparking concerns about competition in the AI market.MicroStrategy's latest prior Bitcoin purchases came earlier this month. The company acquired 11,000 Bitcoins for $1.1 billion between Jan. 13 and Jan. 20.Write to Mackenzie Tatananni at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.