MicroStrategy, a company based in Tysons Corner, Virginia, has solidified its position as a dominant player in the cryptocurrency market. Co-founder and chairman Michael Saylor continues to ramp up Bitcoin acquisitions as part of a buy-and-hold strategy initiated in 2020. The firm now owns over 2% of all the Bitcoin that will ever exist, with holdings valued at approximately $41 billion.
According to a recent filing with the U.S. Securities and Exchange Commission, MicroStrategy acquired 2,530 Bitcoin tokens between January 6 and January 12. The average purchase price was around $95,972 per token. While the pace of acquisitions has slowed in recent weeks, the company remains committed to its ambitious strategy.
To fuel its Bitcoin buying spree, MicroStrategy plans to raise $42 billion in capital through 2027. This funding will come from at-the-market stock sales and convertible debt offerings. The company has already achieved more than two-thirds of its equity goals within three months of announcing the plan, leaving room to purchase an additional $6.5 billion worth of Bitcoin with the proceeds from its current funding strategy.
Hedge funds have played a significant role in driving demand for MicroStrategy’s convertible bonds. These funds engage in convertible arbitrage strategies, which involve buying the bonds and shorting the company’s stock to profit from volatility in the underlying shares.
MicroStrategy’s next major milestone is a shareholder vote scheduled for January 21. The vote will determine whether the company can increase its authorized Class A common stock from 330 million to 10.3 billion shares. Additionally, the firm plans to raise $2 billion through perpetual preferred stock offerings, which would take precedence over its Class A common stock.
Despite the bold moves, MicroStrategy’s stock performance has been mixed. Shares are up 13% so far this year, closing at $327.91 on Friday. However, this remains well below the all-time high of approximately $474 reached in November. Meanwhile, Bitcoin itself has dropped around 3% this year, following a dramatic 120% rally in 2024.
MicroStrategy’s aggressive approach underscores its unwavering belief in Bitcoin’s long-term value. As the company continues to build its Bitcoin treasury, its actions reflect a broader shift in the financial landscape, where traditional investment strategies intersect with the growing influence of digital assets. The coming months will reveal whether MicroStrategy’s gamble pays off, but for now, the firm remains a formidable force in the cryptocurrency space.