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MicroStrategy buys 11,000 Bitcoin for $1.1 billion, boosting holdings to 461,000 BTC

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Key Takeaways

  • MicroStrategy’s Bitcoin holdings surge to 461,000 BTC, now valued at $48 billion, following a new acquisition.
  • The firm funded its latest Bitcoin purchase through stock sales.

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MicroStrategy said Tuesday it had acquired 11,000 Bitcoin worth $1.1 billion between January 13 and 20, executing the purchase at an average price of $101,191 per coin. The move marks the company’s eleventh week in a row of Bitcoin acquisitions.

The latest addition brings MicroStrategy’s total Bitcoin holdings to 461,000 BTC, valued at $48 billion at current market prices. The company has invested approximately $29 billion in its Bitcoin holdings at an average price of $63,610.

The Tysons, Virginia-based firm funded the purchase through stock sales, according to a Tuesday SEC filing. MicroStrategy sold 3,012,072 shares between January 13 and 20, generating $1.1 billion in net proceeds. The company maintains $5.4 billion worth of shares available for sale under their sales agreement as of January 20.

The purchase follows a hint from MicroStrategy co-founder Michael Saylor about another Bitcoin acquisition last Sunday. It’s also part of the company’s goal to raise $42 billion to fund these purchases.

MicroStrategy reported its Bitcoin yield, which measures the amount of Bitcoin each share represents over time, has reached 1.69% year-to-date.

MicroStrategy shareholders will vote within hours on a proposal to drastically increase authorized shares: Class A common stock from 330 million to 10.3 billion, and preferred stock from 5 million to 1 billion.

The move aims to further the company’s “21/21” plan, under which it has already acquired 208,780 BTC (50% of its target). Given Michael Saylor’s 46% voting power through Class B shares, the vote is expected to pass.

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