Alice Morgan, Alice Morgan’s composite photo for Investopedia. Getty Images
What you need to know
- MicroStrategy stock rose last week after it purchased $101 million in bitcoin.
- At current exchange rates, the company owns 447,470 Bitcoins, which are worth approximately 45 billion dollars.
- MicroStrategy has announced plans to raise capital of $2 billion over the next 3 years. This is part of its strategy to raise $42 Billion via debt and equity to buy bitcoin.
MicroStrategy’s (MSTR) shares rose as the company, one of largest corporate bitcoin (BTCUSD), added to their stockpile. They plan to add more capital in future to purchase additional bitcoin.
A recent filing with the SEC shows that on Dec.30 and 31, the company acquired 1,070 bitcoins at an average cost of $94,004 a bitcoin.
MicroStrategy currently holds 447 470 bitcoins valued at approximately $45 Billion, after bitcoin prices returned to above $101,000.
Raise Capital to Fund Bitcoin Future Purchases
MicroStrategy, which announced Friday plans to raise as much as $2 billion within the next three-year period, filed the purchase application.
The capital raise adds to MicroStrategy’s previously-announced "21/21" strategy. The 21/21 plan is the company's strategy of raising $42 billion of capital by selling new shares and fixed-income securities to buy more bitcoin.
MicroStrategy joined the Nasdaq 100 Index in December. However, concerns over leverage and the sustainability of its bitcoin purchasing strategy caused the stock to plummet in the last month.
MicroStrategy’s shares rose 6% in Monday trading and are now up over 470% year-to-date, despite some recent volatility.
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