MSTR takes action again! $243 million increase in Bitcoin holdings, total holdings approximately $41 billion
On Monday Eastern Time, the technology company Microstrategy, known for holding a large amount of Bitcoin, announced that it has increased its Bitcoin holdings again, spending $243 million to purchase 2,530 Bitcoins at an average price of approximately $95,972. This marks the company's 10th consecutive week of increasing its holdings, currently holding Bitcoin worth approximately $41 billion, accounting for over 2% of the total Bitcoin supply. During Monday's trading session, cryptocurrency concept stocks fell broadly, with MSTR at one point dropping over 7%
"Bitcoin holder" MicroStrategy has bought Bitcoin again.
On Monday Eastern Time, according to a filing submitted to the U.S. Securities and Exchange Commission, MicroStrategy spent $243 million to acquire 2,530 Bitcoins, marking the company's 10th consecutive week of increasing its Bitcoin holdings. This purchase occurred between January 6 and 12, with an average acquisition price of approximately $95,972. As of now, MicroStrategy holds a total Bitcoin value of about $41 billion, accounting for over 2% of the total Bitcoin supply.
MicroStrategy's Bitcoin ambitions do not stop here. Since launching its "buy and hold" Bitcoin strategy in 2020, MicroStrategy has become a benchmark for Bitcoin investment in the corporate world. The company's co-founder and chairman, Michael Saylor, has consistently increased his stake and has been expanding holdings through various financing methods.
The company also plans to raise $42 billion by 2027 through a targeted issuance of stocks and convertible bonds for further Bitcoin purchases. Notably, less than three months after announcing this plan, MicroStrategy has already completed over two-thirds of its equity target. According to the current plan, the company can raise an additional $6.5 billion by issuing stocks to buy Bitcoin.
In addition, MicroStrategy is preparing for an important shareholder vote scheduled for January 21. The core issue of this vote is whether to increase the authorized number of Class A common shares from 330 million to 10.3 billion, a 30-fold increase. The company also plans to raise up to $2 billion through the issuance of perpetual preferred shares to expand its funding sources. These preferred shares will have priority over Class A common shares in the company's capital structure.
It is worth mentioning that this series of actions by MicroStrategy has also attracted the attention of Wall Street hedge funds. Some hedge funds have begun to use MicroStrategy as a tool for convertible bond arbitrage strategies, buying the company's bonds while shorting the stock, essentially betting that the company's stock price will fluctuate significantly.
On Monday, Bitcoin futures fell more than 3%, and cryptocurrency-related stocks experienced widespread declines. MicroStrategy's stock fell over 7.4% at one point during the morning session, having accumulated a rise of over 13% as of last Friday, closing at $327.91, but still far below the historical high of about $474 in November last year. In contrast, Bitcoin has accumulated a rise of about 120% in 2024 but has fallen about 3% this year.
