MicroStrategy Acquires Additional Bitcoin

Business intelligence firm and corporate bitcoin holder MicroStrategy acquired an additional 11,000 BTC for approximately $1.1 billion at an average price of $101,191 per bitcoin between Jan. 13 and Jan. 20, according to an 8-K filing with the Securities and Exchange Commission on Tuesday.

This acquisition follows the sale of 3,012,072 MicroStrategy shares during the same period for the same amount. As of Jan. 20, the company reported approximately $5.42 billion worth of shares remaining for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities capital raise, targeting a total of $42 billion for bitcoin acquisitions.

Earlier this month, the company expanded that 21/21 plan, announcing a potential $2 billion preferred stock offering. By turning to perpetual preferred stock, MicroStrategy could attract institutional investors such as insurance companies, pension funds, and banks, according to Benchmark equity analyst Mark Palmer.

Currently, the company holds 461,000 BTC, valued at over $48 billion. MicroStrategy’s total holdings were acquired at an average price of $63,610 per bitcoin, costing around $29.3 billion, including fees and expenses, according to the company’s co-founder and executive chairman, Michael Saylor. To put this in context, MicroStrategy holds more than 2% of bitcoin’s total supply of 21 million.

Multi-week Bitcoin Buying Streak

MicroStrategy’s latest announcement marks the eleventh week in a row of acquisitions, following news that it acquired another 2,530 BTC for roughly $243 million in cash at an average estimated price of $95,972 per coin, and $101 million worth of bitcoin the prior week. Saylor updated MicroStrategy’s bitcoin purchase tracker on Sunday, suggesting another acquisition filing was imminent, though it was delayed due to President Trump’s inauguration on Martin Luther King Jr. Day.

MicroStrategy has spent around $19 billion on bitcoin over the past few months. Its $97.7 billion market cap trades at a significant premium to its bitcoin net asset value, with some investors expressing concerns about the firm’s valuation premium and its bitcoin acquisition strategy funded through equity and debt.

MicroStrategy shares closed up 8% at $396.50 on Friday, having gained more than 693% over the past year, according to TradingView. The U.S. markets were closed on Monday.