MicroStrategy Now Buys A Whopping $243 Million in Bitcoin

MicroStrategy now buys a whopping $243 million Bitcoin, or 2,530 tokens according to an 8-K filing with the SEC.

MicroStrategy, the prominent business intelligence firm known for its bold strategy of accumulating Bitcoin, has recently added 2,530 BTC to its already substantial reserves.

According to an 8-K filing with the Securities and Exchange Commission (SEC) made on Monday, the company invested approximately $243 million between January 6 and January 12, purchasing Bitcoin at an average price of $95,972 per coin.

A Consistent Strategy: Ten Weeks of Bitcoin Acquisitions

This latest acquisition marks MicroStrategy’s tenth consecutive week of Bitcoin purchases.

Just the previous week, the company announced the acquisition of 1,070 BTC for $101 million, averaging about $94,004 per coin.

These transactions follow the sale of 710,425 company shares, which provided the necessary capital for these Bitcoin investments.

Ambitious Financial Goals: Raising $42 Billion by 2027

MicroStrategy’s long-term vision includes raising a staggering $42 billion by 2027 through at-the-market stock sales and convertible debt offerings aimed at funding further Bitcoin purchases.

Remarkably, the company has already secured more than two-thirds of its equity-raising target within just three months of launching this ambitious initiative.

Earlier this year, the company reinforced its commitment to this plan with a proposed $2 billion perpetual preferred stock offering.

This offering, which ranks senior to its A-class common stock, includes conversion provisions into common shares, cash dividend payments, and redemption options.

Attracting Institutional Investors

According to benchmark equity analyst Mark Palmer, this innovative approach could potentially attract institutional investors, including insurance companies, pension funds, and banks, thereby boosting MicroStrategy’s financial standing and support for its Bitcoin strategy.

Record-Breaking Bitcoin Purchases in 2024

MicroStrategy made headlines in 2024 with a record total of Bitcoin acquisitions amounting to 90,079 BTC, valued at over $6 billion.

Notable purchases included 27,200 BTC in November for $2 billion and 18,300 BTC in September for $1.11 billion.

On the last day of 2024, the company announced a $209 million investment for 2,138 BTC at an average price of $97,837, following a significant $509 million purchase earlier in December.

Current Bitcoin Holdings and Market Value

As of January 13, MicroStrategy holds an impressive 450,000 BTC, which represents approximately 2.1% of Bitcoin’s total supply of 21 million coins.

The firm’s overall Bitcoin investments, acquired at an average price of $62,691 per coin, amount to a total expenditure of $28.2 billion, including fees and expenses as reported by executive chairman Michael Saylor.

This aggressive acquisition strategy has sparked considerable debate among market analysts across various financial sectors.

Criticism and Support for MicroStrategy’s Strategy

While some investors express concerns about the sustainability of MicroStrategy’s equity and debt-funded purchases, the firm’s market capitalization of $81 billion trades at a significant premium compared to its Bitcoin net asset value, raising eyebrows among skeptics.

Despite these critiques, the company has spent over $18 billion on Bitcoin in just the past ten weeks.

If BTC stalls or crashes, the loop collapses.

This is unsustainable and is a giant Ponzi.”

Conversely, supporters of MicroStrategy’s strategy, such as Ki Young Ju, CEO of CryptoQuant, dismissed these concerns, asserting that it would require a catastrophic event to jeopardize the firm’s position.

Some analysts believe that MicroStrategy’s vast Bitcoin holdings could provide unique opportunities for profit.

Holding a significant amount of this inflation-proof asset allows for potential earnings through lending and borrowing.”

As MicroStrategy continues to expand its Bitcoin reserves, the firm remains at the center of a heated debate regarding the sustainability and viability of its strategy.

With ambitious financial goals and a commitment to increasing its Bitcoin holdings, the company is poised to play a significant role in the evolving landscape of cryptocurrency investment.

The outcomes of its strategy will undoubtedly be closely monitored by investors and analysts alike as the market continues to change.

Also Read: IRS Now Delays Crypto Tax Reporting Requirements Until 2026