MicroStrategy, the business intelligence firm renowned for its aggressive Bitcoin acquisition strategy, has purchased an additional 2,530 BTC for approximately $243 million, according to an 8-K filing with the Securities and Exchange Commission on Monday. The purchase was made at an average price of $95,972 per bitcoin between January 6 and January 12, 2025.
The latest acquisition takes MicroStrategy’s Bitcoin holdings to an impressive 450,000 BTC, valued at over $40 billion. The firm has spent a total of $28.2 billion on its Bitcoin reserves, with an average acquisition price of $62,691 per bitcoin, including fees and expenses. This makes MicroStrategy the largest corporate holder of Bitcoin, controlling about 2.1% of the cryptocurrency’s capped supply of 21 million coins.
Financing the Bitcoin Push
The acquisition coincided with MicroStrategy selling 710,425 shares of its stock during the same period, raising an equivalent $243 million to fund the purchase. This sale is part of the company’s 21/21 capital-raising strategy, which aims to raise a combined $42 billion through equity and fixed-income securities.
Additionally, the company recently announced plans for a $2 billion preferred stock offering, a move analysts believe could attract institutional investors like pension funds and insurance companies. According to Benchmark analyst Mark Palmer, this strategy could “unlock an institutional goldmine” for MicroStrategy while diversifying its investor base.
Ten-Week Buying Streak
MicroStrategy’s latest acquisition extends its ten-week Bitcoin buying streak, during which it has invested over $18 billion in the cryptocurrency. Last week, the firm purchased 1,070 BTC for $101 million, following a $209 million acquisition the week prior.
“MicroStrategy’s consistent acquisitions highlight the company’s ongoing confidence in Bitcoin as a strategic reserve asset,” said BRN analyst Valentin Fournier. “While recent purchases have had limited market impact, they reinforce the firm’s role as a dominant player in institutional Bitcoin investment.”
Market Reactions and Valuation Concerns
MicroStrategy’s stock, which has surged over 447% in the past year, closed 1.1% lower at $327.91 on Friday. It is currently down 4.2% in pre-market trading as investors weigh the firm’s equity and debt-funded Bitcoin acquisition strategy.
The company’s $81 billion market capitalization trades at a significant premium to its net asset value (NAV), leading some investors to question the sustainability of its aggressive approach. However, MicroStrategy continues to view Bitcoin as a transformative asset and a cornerstone of its corporate strategy.
Michael Saylor’s Vision
MicroStrategy co-founder and executive chairman Michael Saylor remains a steadfast advocate for Bitcoin. “We are committed to acquiring Bitcoin as part of our mission to embrace the digital transformation of treasury management,” Saylor said in a recent update.
With its ongoing acquisitions, innovative financing strategies, and bold vision, MicroStrategy is poised to maintain its leadership in corporate Bitcoin investment, even as market conditions evolve.
