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MicroStrategy Doubles Down on Bitcoin, Buys 10,101 BTC

Coin WorldMonday, Jan 27, 2025 10:22 am ET

1min read

MicroStrategy, the world's largest corporate holder of Bitcoin (BTC), has announced another significant purchase of the cryptocurrency, adding 10,101 BTC to its treasury. The acquisition, valued at approximately $1.1 billion, brings the company's total holdings to 471,101 BTC.

The purchase, made between January 21 and 26, was financed through the sale of 2,765,157 shares, raising $1.1 billion in net proceeds. This marks the twelfth consecutive week of Bitcoin purchases for MicroStrategy, which has now invested around $30 billion in BTC, with an average cost of $64,500 per coin.

Michael Saylor, executive chairman of MicroStrategy, has been a vocal advocate for the company's aggressive Bitcoin acquisition strategy. He views BTC as a fundamental part of the company's corporate growth strategy, rather than just a financial investment.

Shareholders have shown support for the company's Bitcoin treasury strategy, with a recent vote approving an increase in authorized Class A common shares from 330 million to 10.3 billion and preferred stock from 5 million to 1 billion. This move aligns with the company's goal of raising $42 billion by 2027 for additional Bitcoin acquisitions.

MicroStrategy's latest purchase reaffirms its status as the largest corporate Bitcoin holder, highlighting its commitment to the cryptocurrency amid market volatility. The company's aggressive strategy has drawn attention within the financial community, raising questions about the sustainability and risks associated with leveraging debt for digital asset acquisition.

Despite Bitcoin's recent fluctuation below the $100,000 mark, MicroStrategy remains undeterred in its strategy. The company views temporary market conditions as opportunities rather than obstacles, adopting a long-term viewpoint that emphasizes the potential recovery and growth in Bitcoin's valuation.

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