MicroStrategy expands its dominance over Bitcoin with a sustained purchasing strategy and financial planning that includes issuing shares to secure its long-term position in the cryptocurrency market.
MicroStrategy Inc bought another $243 million worth of Bitcoin, the 10th consecutive weekly purchase for the enterprise software company that has become a leveraged proxy for Bitcoin. The Tysons Corner, Virginia-based firm now owns more than 2% of all BTC that will ever exist, as co-founder and president Michael Saylor ramps up purchases as part of a buy-and-hold strategy that began in 2020.
Now, MicroStrategy owns around $41 billion in the cryptocurrency.
The firm acquired 2,530 Bitcoin tokens at an average price of approximately $95,972 between January 6 and January 12, according to a document filed with the US Securities and Exchange Commission that emerged this Monday. The pace of purchases had slowed in recent weeks.
Saylor’s strategy
The so-called “Bitcoin treasury company” plans to raise $42 billion in capital through 2027 through market share sales and convertible debt issues to buy more Bitcoin. MicroStrategy has already surpassed two-thirds of its capital goals less than three months after announcing its plans. It can buy another $6.5 billion in Bitcoin with proceeds from stock sales under the current plan.
Hedge funds have been driving some of the demand, looking to MicroStrategy for convertible arbitrage strategies by buying bonds and shorting stocks, essentially betting on the volatility of the underlying stocks.
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The firm hopes to move forward with its stock offerings, with a shareholder vote scheduled for Jan. 21 to decide whether to increase the number of authorized shares of its Class A common stock from 330 million to 10.3 billion. MicroStrategy also plans to raise $2 billion through issuances of perpetual preferred stock, which would take priority over its Class A common stock.
MicroStrategy shares are up 13% so far this year, closing at $327.91 on Friday, but still well below its all-time high of about $474 in November. Bitcoin has fallen around 3% this year, after rising 120% in 2024.
Source: Ambito
