MicroStrategy Bolsters Bitcoin Treasury with Latest $264 Million Acquisition, Total Holdings Reach $62.5 Billion

MicroStrategy (NASDAQ: MSTR), the world’s leading publicly traded holder of Bitcoin, has once again amplified its pioneering digital asset strategy with a significant new acquisition. According to a recent filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the enterprise software firm invested a substantial $264 million to acquire an additional 2,932 Bitcoins between January 20th and 25th. This latest tranche was purchased at an average price of $90,061 per BTC, underscoring the company’s unwavering conviction in the cryptocurrency’s long-term value. You can review the official SEC filing here.

This strategic acquisition propels MicroStrategy’s total Bitcoin treasury to an impressive 712,647 BTC, now valued at approximately $62.5 billion. Company co-founder and Executive Chairman, Michael Saylor, a vocal proponent of Bitcoin, revealed that since the company initiated its groundbreaking Bitcoin allocation strategy in 2020, MicroStrategy’s cumulative investment stands at approximately $54.2 billion. The average cost basis for these extensive holdings is a remarkable $76,037 per Bitcoin.

Presently, MicroStrategy’s Bitcoin portfolio boasts an unrealized profit of approximately $8.3 billion. Furthermore, its substantial holdings now account for a significant 3.4% of Bitcoin’s finite 21 million coin supply, cementing its position as a dominant institutional player in the crypto ecosystem.

Funding the Future: MicroStrategy’s Ambitious Capital Strategy

The capital for this recent Bitcoin expansion was primarily generated through strategic sales of MicroStrategy’s Class A common stock (MSTR) and its perpetual preferred stock, notably “Stretch” (STRC). In the past week alone, MicroStrategy successfully sold approximately 1.56 million MSTR shares, netting $257 million. Concurrently, the company raised an additional $7 million through the sale of STRC, demonstrating a diversified and robust funding approach.

As of January 25th, MicroStrategy retains considerable financial flexibility, with $8.17 billion worth of MSTR shares and $3.62 billion worth of STRC shares still available for issuance and sale, providing ample runway for future acquisitions.

These financing maneuvers are integral to MicroStrategy’s ambitious “42/42” fundraising initiative. This comprehensive plan involves the issuance of four distinct perpetual preferred stocks – STRK, STRC, STRF, and STRD – with respective issuance sizes reaching $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion. The overarching objective of the ’42/42′ strategy is to accumulate a staggering $84 billion by 2027 through a combination of stock and convertible bond issuances, all earmarked for further Bitcoin acquisitions. This aggressive capital raise underscores MicroStrategy’s long-term commitment to Bitcoin as its primary treasury reserve asset and growth engine.