MicroStrategy’s Bold Bitcoin Bet Continues: $1.25 Billion Acquisition Fuels Portfolio Growth

MicroStrategy (NASDAQ: MSTR), the world’s largest publicly traded corporate holder of Bitcoin, has once again made a significant move in the cryptocurrency market. Demonstrating its unwavering commitment to its digital asset strategy, the company recently executed its largest Bitcoin acquisition in months.

MicroStrategy’s Latest Bitcoin Power Play

According to a recent filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy invested a staggering $1.25 billion to acquire 13,627 Bitcoins between January 5th and January 11th. This substantial purchase was made at an average price of $91,519 per Bitcoin, marking the company’s most extensive single acquisition since July of the previous year.

An Expanding Bitcoin Empire and Soaring Profits

With this latest addition, MicroStrategy’s cumulative Bitcoin holdings have reached an impressive 687,410 BTC. Michael Saylor, the company’s co-founder and Executive Chairman, revealed that these holdings are currently valued at approximately $62.3 billion. Since MicroStrategy first began its pioneering Bitcoin investment strategy in 2020, its total capital outlay stands at around $51.8 billion, resulting in an average acquisition cost of $75,353 per Bitcoin.

Based on current market prices, MicroStrategy is sitting on an estimated unrealized profit (paper gain) of approximately $10.5 billion. The company’s substantial Bitcoin treasury now represents roughly 3.27% of Bitcoin’s finite total supply of 21 million coins, solidifying its position as a dominant institutional player.

Innovative Funding: Fueling the Bitcoin Strategy

MicroStrategy’s ability to consistently expand its Bitcoin reserves is underpinned by a sophisticated funding strategy. The capital for this latest acquisition primarily stemmed from the sale of its Class A common stock (MSTR) and perpetual preferred stock, notably “Stretch” (STRC). In the past week alone, MicroStrategy generated $1.13 billion by selling approximately 6.82 million MSTR shares and an additional $119 million through the issuance of STRC.

A Deep War Chest and Ambitious Future Plans

Despite these frequent capital raises, MicroStrategy’s financial “war chest” remains robust. As of January 11th, the company still possesses the capacity to issue and sell MSTR stock valued at $10.26 billion and STRC stock worth $3.92 billion.

These issuances are part of MicroStrategy’s ambitious “42/42” fundraising initiative. This comprehensive plan involves four perpetual preferred stock offerings – STRK ($21 billion), STRC ($4.2 billion), STRF ($2.1 billion), and STRD ($4.2 billion) – with a collective goal to raise $84 billion by 2027 through various stock and convertible bond issuances, all earmarked for further Bitcoin acquisitions. This strategy underscores MicroStrategy’s long-term vision and unwavering commitment to Bitcoin as a primary treasury reserve asset.