MicroStrategy. “FORM 8-K MICROSTRATEGY INCORPORATED.”
MicroStrategy, a business intelligence firm led by Michael Saylor, purchased an additional $1 billion worth of Bitcoin last week. This acquisition brings their total Bitcoin holdings to approximately 140,000 BTC, acquired at an average price of around $29,000 per coin.
The company continues to view Bitcoin as a critical store of value and a hedge against inflation, strengthening its position as one of the largest corporate holders of the cryptocurrency.
Selling Shares To Add To Bitcoin Stash
MicroStrategy’s bitcoin buying playbook has included selling shares or leveraging debt to fund purchases. Last year, it announced plans to raise $42 billion over three years using those methods to build its bitcoin book.2 It expanded that goal by $2 billion earlier this year.
On Tuesday, MicroStrategy voters will cast their ballots to decide whether the company should increase authorized shares of class A common stock to 10.3 billion from 330 million and its authorized preferred stock to 1 billion from 5 million.4 If that vote goes through, it will add to MicroStrategy’s ability to use share sales to buy more bitcoin. As of Jan. 21, MicroStrategy has roughly $5.42 billion left in equity available to issue under its current capital plan.
MicroStrategy’s bitcoin acquisition strategy has not come without criticism. Some investors question the risks tied to its approach based on debt and equity issuance. But it has inspired other listed companies, such as bitcoin miner Marathon Digital (MARA), to follow its bitcoin treasury blueprint.
Over the past year, MicroStrategy shares have gained more than 690%.
Sources
Torpey, K. (2025, January 21). MicroStrategy bought another $1B in Bitcoin last week. Investopedia. https://www.investopedia.com/microstrategy-bought-another-usd1b-in-bitcoin-last-week-8777636
