MicroStrategy acquires 10,107 Bitcoin
MicroStrategy has made a substantial addition to its Bitcoin assets by acquiring 10,107 BTC for a total of $1.1 billion, which averages out to $105,596 for each coin. The acquisition took place between January 21 and 26, representing the company’s twelfth week in a row of purchasing Bitcoin.
The company currently possesses 471,107 BTC, which is valued at around $46.7 billion. MicroStrategy has made a total investment of around $30 billion in Bitcoin, with an average cost of $64,500 for each coin purchased.
Furthermore, MicroStrategy financed its latest purchase by selling 2,765,157 shares, which resulted in net proceeds of $1.1 billion. As of January 26, the firm has $4.35 billion in shares available under its sales agreement.
On top of that, support from shareholders has also played a vital role in MicroStrategy’s bold approach to Bitcoin. Shareholders have recently approved a significant increase in the authorized Class A common shares, raising the total from 330 million to 10.3 billion.
Additionally, the preferred stock has been increased from 5 million to 1 billion, with 56% of the votes in favor of these changes. The company aims to raise $42 billion by 2027 to acquire more Bitcoin, and this decision supports that objective.
MicroStrategy’s Bitcoin yield, reflecting the amount of Bitcoin per share, is currently at 2.9% for the year so far. Last Friday, the company’s shares experienced a decline of approximately 5% by the time the market closed, as reported by Yahoo Finance.
The firm, originally a traditional software company, has evolved into a significant force in the digital asset market. This transformation has greatly increased its market capitalization and delivered considerable returns for its shareholders following the implementation of its Bitcoin strategy. The company seeks to provide investors with a regulated way to invest in Bitcoin by allowing them to trade its shares on Nasdaq.
MicroStrategy began its Bitcoin investment journey in 2020 and has steadily ramped up its acquisitions, particularly over the past 12 weeks. CEO Saylor views Bitcoin as a robust protection against inflation and urges other companies to adopt a similar approach.
In December, MicroStrategy became a part of the Nasdaq-100 index, aligning itself with leading non-financial companies such as Apple and Microsoft. As of now, MicroStrategy shares are trading at around $340 each, reflecting a 14% decrease over the last week due to overall market downturns.
Recently, Michael Saylor, announced the launch of $STRK, a new convertible preferred stock offering available to institutional investors and select retail investors.
