MicroStrategy Acquires Another 10,107 BTC for $1.1 Billion

MicroStrategy’s Bitcoin holdings have grown to 471,107 BTC, worth over $46 billion. The company’s average purchase price stands at $64,511 per Bitcoin, with total spending, including fees, amounting to $30.4 billion, as shared by co-founder and executive chairman Michael Saylor.

This accounts for more than 2.2% of Bitcoin’s total capped supply of 21 million.

The funding for this purchase came from the sale of 2,765,157 company shares, raising an equivalent amount. By January 26, MicroStrategy had the option to sell up to $4.35 billion in shares as part of its “21/21” program. This initiative aims to generate $42 billion through equity sales and fixed-income securities to expand Bitcoin holdings.

On Tuesday, shareholders approved key amendments to the plan, allowing the company to increase the number of authorized Class A and preferred shares for future Bitcoin acquisitions.

On Friday, the company made the decision to repurchase its $1.05 billion worth of 2027 convertible bonds and employ its shares to satisfy all conversion requests. This could be an effort to trim the company’s debt and encourage bondholders to convert their bonds into equity, especially considering the ambiguity regarding the tax implications of MicroStrategy’s Bitcoin assets under the new FASB regulations and the provisions of the Inflation Reduction Act of 2022.

MicroStrategy’s Three-Month Bitcoin Accumulation Run

MicroStrategy’s most recent purchase marks its 12th consecutive week of Bitcoin acquisitions, beginning with the purchase of 11,000 BTC for $1.1 billion in cash at an average price of $101,191 per Bitcoin. Last week, the company also spent $243 million to acquire more Bitcoin. On Sunday, Saylor provided an update on the company’s BTC tracker and hinted that another Bitcoin purchase could happen as early as Monday.

In the past few months, MicroStrategy has spent approximately $20 billion on Bitcoin. The company’s market cap is now $87.2 billion, and its stock trades at a premium to its net asset value in Bitcoin. However, some investors remain cautious, questioning both the premium and the strategy behind the Bitcoin purchases, which are funded through both equity and borrowing.

Read on: “Unpacking MicroStrategy’s Bitcoin Strategy and Its Risks”

MicroStrategy’s stock ended Friday with a 5.2% decline to $353.67, though it has grown by an impressive 681% over the past year. On Monday, the stock slid another 5.6% in premarket trading.