MicroStrategy now holds 461,000 Bitcoin worth $48 billion after their latest Bitcoin purchase. The company bought Bitcoin after selling its shares to investors.
According to Microsrategy’s official announcement on Jan. 17, it acquired 11,000 Bitcoins worth $1.1 billion from January 13th to 20th for $101,191 per coin to build its Bitcoin holdings. MicroStrategy has now bought Bitcoin for eleven straight weeks.
MicroStrategy Funds Bitcoin Acquisition Through Stock Sales
MicroStrategy now holds $29 billion in Bitcoin after spending $63,610 per coin over multiple acquisitions. According to its SEC filing from Tuesday, MicroStrategy funded the BTC acquisition through stock sales.
The company used stock sales to raise $1.1 billion by selling 3,012,072 shares across seven days from January 13 to 20. After completing transactions from January 13 to 20, MicroStrategy maintained $5.4 billion in sellable shares under its current agreement.
MicroStrategy’s Bitcoin Expansion Plan Fueled by Michael Saylor’s Comments
The company’s recent decision to buy additional BTC stems from comments by MicroStrategy co-founder Michael Saylor. Through its expansion plan, the company aims to use $42 billion to strengthen its BTC investment capacity.
MicroStrategy shareholders must vote on a plan to significantly expand the number of shares the company can issue. The proposal would expand the total number of Class A common stock to 10.3 billion shares and set a new limit of 1 billion shares for preferred stock.
With his strong position as a Class B shareholder, Saylor expects to secure the vote’s approval to fund the “21/21” initiative, which aims to purchase 21 million Bitcoins while having secured half its target funds. The company’s Bitcoin yield, tracked over time, has delivered 1.69% returns this year.
