Key Takeaways
MicroStrategy announced on Monday that it has acquired 2,138 Bitcoin for approximately $209 million, bringing its total holdings to 446,400 BTC. The purchases were made between December 23 and December 29 at an average price of $97,837 per coin. Based on current market prices, the company’s Bitcoin holdings are valued at around $41.8 billion.
To fund this acquisition, MicroStrategy sold shares of its own stock, generating $209 million in net proceeds. As of December 30, the company still has about $6.8 billion worth of shares available for sale from its planned $21 billion equity offering and an additional $21 billion in fixed-income securities.
MicroStrategy co-founder and executive chairman Michael Saylor stated earlier this month that the company would reassess its capital allocation strategy once it reaches its $42 billion target for Bitcoin investments. In line with this, the company will hold a special meeting to vote on proposals to enhance its Bitcoin acquisition strategy. These proposals include increasing the authorized Class A common stock from 330 million to 10.33 billion shares and raising the number of authorized preferred shares from 5 million to 1.005 billion.
Since announcing its 21/21 plan, MicroStrategy has acquired over 194,000 BTC worth around $18 billion, achieving about 42% of its planned investment goal in less than two months.
This latest acquisition marks MicroStrategy’s eighth consecutive week of Bitcoin purchases, following its announcement last week that it had bought 5,000 Bitcoin for $561 million. The company’s debut on the Nasdaq 100 index could increase the likelihood of large exchange-traded funds buying the stock.