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MicroStrategy Doubles Down on Bitcoin, Buys 10,107 BTC for $1.1B

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

1min read

MicroStrategy, a leading business intelligence company, has once again demonstrated its commitment to Bitcoin by acquiring an additional 10,107 BTC for approximately $1.1 billion in cash. This strategic move brings the company's total Bitcoin holdings to an impressive 471,107 BTC, solidifying its position as the world's largest corporate Bitcoin holder.

In a recent filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy revealed that it had purchased the Bitcoin between January 21 and 26, 2025. The average price per Bitcoin was around $105,596, reflecting the company's long-term investment strategy despite recent market volatility.

To finance this latest acquisition, MicroStrategy sold 2,765,157 shares, raising approximately $1.1 billion in net proceeds. The company retains around $4.35 billion in available shares under its sales agreement, providing it with the financial flexibility to continue pursuing its aggressive Bitcoin acquisition strategy.

MicroStrategy's shareholders have played a crucial role in supporting this strategy. In a recent vote, shareholders approved 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.

In addition to its Bitcoin purchases, MicroStrategy has also proposed a preferred stock offering. The company plans to issue 2.5 million shares of Series A Perpetual Strike Preferred Stock for general corporate purposes, including Bitcoin acquisition. This offering is part of the company's ongoing efforts to raise capital and diversify its investment portfolio.

MicroStrategy's aggressive Bitcoin acquisition strategy has not only reshaped its financial structure but has also influenced other corporations globally. The company's "21/21 plan" has paved the way for further capital acquisition, and its blueprint has inspired several companies to adopt similar strategies. As the largest corporate holder of Bitcoin, MicroStrategy's actions set a precedent that may influence corporate investment strategies worldwide.

Despite recent market fluctuations, MicroStrategy remains undeterred in its strategy. The company views temporary market conditions as opportunities rather than obstacles and maintains a long-term perspective on Bitcoin's valuation. As the cryptocurrency market continues to evolve, stakeholders will

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