Microstrategy, a software intelligence powerhouse turned corporate Bitcoin (BTC) titan, has again made headlines with its audacious investment strategy. Between January 21 and January 26, the company acquired an additional 10,107 BTC. This Bitcoin acquisition was purchased at an average price of $105,596 per coin, totaling $1.1 billion.
This latest purchase underscores MicroStrategy’s unyielding commitment to Bitcoin as its central asset strategy. This development was detailed in an 8-K filing with the Securities and Exchange Commission.
Meanwhile, this latest acquisition coincides with the sale of 2,765,157 MicroStrategy shares. These transactions form part of the company’s ambitious plan to sell up to $4.35 billion in equity and an equal amount in fixed-income securities. Together, these moves aim to secure $42 billion over the next three years, mainly for buying more Bitcoin.
Notably, this dual strategy of share dilution and strategic accumulation reflects the firm’s confidence in Bitcoin’s long-term value. MicroStrategy’s Bitcoin holdings stand at an impressive 471,107 BTC, valued at over $46 billion. The company’s cumulative acquisition cost, including fees and expenses, is about $30.4 billion, translating to an average price of $64,511 per Bitcoin.
Interestingly, this positions MicroStrategy as the largest corporate Bitcoin holder, holding over 2.2% of Bitcoin’s total 21 million supply. To gauge its performance and justify its strategy to shareholders, MicroStrategy employs a proprietary metric called Bitcoin Yield. This measures the percentage change in Bitcoin holdings relative to the company’s diluted shares.
MicroStrategy’s co-founder and executive chairman, Michael Saylor, has been very open about the company’s Bitcoin plans. Every week, for 11 weeks in a row, he posted hints about the company’s Bitcoin purchases. On January 19, he shared a Bitcoin chart, signaling that the firm plans to buy more soon. A few days earlier, the company bought 2,350 BTC worth $243 million, pushing its Bitcoin stash to 450,000 BTC valued at a whopping $47.3 billion.
The company’s plan is part of its 21/21 initiative, a bold move to raise $42 billion through equity and fixed-income securities to fund Bitcoin purchases. Recall that the firm announced plans to raise another $2 billion through a perpetual preferred stock offering to fuel its Bitcoin buying spree.
Michael Saylor has not confined his Bitcoin advocacy to his company. Saylor urged Microsift’s CEO, Satya Nadella, and its board to adopt Bitcoin as a treasury asset. He boldly predicted that doing so could drive the company’s assets to skyrocket to $5 trillion.
Recently, he made a bold call for 60 public companies to issue equity to buy Bitcoin. Saylor’s bold stance highlights his belief in Bitcoin as a revolutionary financing tool. He sees it as unmatched in preserving value and driving growth.
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