MicroStrategy has made another purchase of the cryptocurrency, acquiring 11,000 BTC for approximately $1.1 billion. This move brings the company’s total Bitcoin holdings to 461,000 BTC, valued at over $48 billion.
This acquisition, which happened between Jan. 13 and Jan. 20, is part of a broader plan to buy Bitcoin by selling both fixed-income instruments and stocks.
Details of the acquisition and financing strategy
In an official filing with the SEC on January 21, MicroStrategy disclosed the acquisition of 11,000 BTC. These were bought at an average price of $101,191 per Bitcoin. To fund this acquisition, the company sold 3,012,072 of its own shares, raising the same amount.
The company’s ongoing equity and debt program, dubbed the “21/21 plan,” aims to raise up to $42 billion for Bitcoin acquisitions. The remaining $5.42 billion worth of shares is still available for sale as part of its broader financial strategy.
MicroStrategy’s Bitcoin holdings were accumulated at an average price of $63,610 per Bitcoin. The total cost amounts to around $29.3 billion. This makes MicroStrategy the holder of more than 2% of Bitcoin’s total supply of 21 million coins.
MicroStrategy moves and future outlook
As part of its long-term strategy, MicroStrategy has also proposed a $2 billion preferred stock offering, which could attract institutional investors, such as pension funds and insurance companies.
The company’s co-founder, Michael Saylor, has also advocated integrating Bitcoin into the broader financial system. Saylor has previously suggested that a national Bitcoin reserve could strengthen the US dollar and neutralize the national debt.
The acquisition notice makes US crypto regulation more attractive to investors and users. After President Donald Trump’s January 20 inauguration, people started to talk about a national Bitcoin reserve for the US.
According to betting market Kalshi, there’s a 65% chance that Trump will follow through on his campaign promise to establish a Bitcoin reserve this year.
