Continuing its aggressive Bitcoin acquisition strategy, MicroStrategy has added 2,530 BTC worth $243M to its reserves, which now exceed 450,000 BTC.
Between January 6 and January 12, the company spent approximately $243 million purchasing Bitcoin at an average price of $95,972 per coin, according to an 8-K filing with the Securities and Exchange Commission on Monday..
MicroStrategy disclosed the acquisition of 1,070 BTC for $101 million in cash, with an average price of $94,004 per coin, last week. Following the sale of 710,425 company shares during the same period, these transactions provided the necessary funds for additional Bitcoin purchases.
The Bitcoin treasury firm plans to sell at-the-market stocks and convertible debt to generate $42 billion by 2027. The money will go toward buying more Bitcoin. In less than three months since announcing its ambitious strategy, MicroStrategy has already accomplished more than two-thirds of its equity-raising objective.
The most recent acquisitions are a component of MicroStrategy’s ambitious “21/21” strategy, which was unveiled in late October 2024. The plan aims to raise $42 billion through equity and fixed-income securities offerings by 2027. Bitcoin investments are the intended use of these funds.
The company reaffirmed its commitment to the strategy earlier this year by proposing a $2 billion perpetual preferred stock offering. The stock, which is considered senior to its A-class common stock, contains provisions for redemption options, cash dividend payments, and conversion to common shares.
Mark Palmer, an equity analyst at Benchmark, proposed that this strategy could appeal to institutional investors, including banks, pension funds, and insurance companies.
In 2024, MicroStrategy achieved significant milestones by purchasing a total of 90,079 BTC, which is equivalent to over $6 billion. Two notable acquisitions were 27,200 BTC for $2 billion in November and 18,300 BTC for $1.11 billion in September.
The company announced on the final day of 2024 that it had spent $209 million to acquire 2,138 BTC at an average price of $97,837. This occurred subsequent to a $509 million Bitcoin acquisition in December.
As of January 13, MicroStrategy possesses 450,000 BTC, which is equivalent to approximately 2.1% of the 21 million coins in the total supply of Bitcoin. According to executive chairman Michael Saylor, the company’s aggregate holdings, which were acquired at an average price of $62,691 per coin, represent a total expenditure of $28.2 billion, which includes fees and expenses.
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