MicroStrategy Acquires Additional Bitcoin

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. This information was disclosed in an 8-K filing with the Securities and Exchange Commission on Monday.

It follows the sale of 710,425 MicroStrategy shares during the same period for the same amount. As of Jan. 12, the company stated that 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, aiming for a total of $42 billion for further bitcoin acquisitions.

Earlier this month, the company expanded its 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 noted.

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, totaling around $28.2 billion, including fees and expenses, according to the company’s co-founder and executive chairman, Michael Saylor. To put this into perspective, MicroStrategy holds about 2.1% of bitcoin’s total 21 million supply.

Ten-week Bitcoin Buying Streak

MicroStrategy’s latest announcement marks the tenth week in a row following news 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 of 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, prompting some investors to express concerns 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, according to TradingView. The stock is currently down 5.2% in pre-market trading on Monday.

Image: TradingView