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What you need to know
- MicroStrategy bought another $1 billion of bitcoin in its treasury. This brings the total number of bitcoin to 461,000.
- It is the 11th consecutive week that MicroStrategy announces a Bitcoin purchase.
- Investors will vote Tuesday to increase MicroStrategy's Class A and preferred stock to enhance its ability to buy more bitcoin.
MicroStrategy, Inc. (MSTR), purchased another $1 billion in bitcoins (BTCUSD) – its biggest purchase for more than a week and 11th straight buying week.
The company has added 11000 BTCs to its bitcoin holdings. This brings the total up to 461,000 BTCs worth about $47 Billion at today’s prices. The company financed its latest acquisition by issuing and selling shares.
Sell Bitcoins to Add to Your Stash
MicroStrategy has a playbook for buying bitcoin that includes selling shares and borrowing to finance purchases. It announced last year that it would raise $42 billion in three years by using these methods. The goal has been increased to $2 billion.
MicroStrategy will vote on Tuesday to increase the authorized class A shares to 10,3 billion, up from 330 millions. The company’s authorized preferred stocks to 1 billion are also being increased from 5,000,000. If that vote goes through, it will add to MicroStrategy's ability to use share sales to buy more bitcoin. MicroStrategy had approximately $5.42 Billion in available equity as of January 21.
MicroStrategy’s strategy for bitcoin acquisition hasn’t been without critics. Investors have questioned the risk associated with its debt-and equity-based approach. It has also inspired others listed companies to adopt its Bitcoin Treasury blueprint, including bitcoin miner Marathon Digital.
The company's stock fell as much as 7% in early trading but recovered a little to trade 3% lower in recent trading. MicroStrategy has seen its shares increase by more than 690 percent in the past 12 months.
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