Enterprise Software Company turned Bitcoin proxy MicroStrategy has pushed forward its buying spree to the 11th week in a row with the latest purchase of 11,000 more BTC worth $1.1 billion.
According to a Bloomberg report, the latest acquisition of Bitcoin at the average price of $101,191 per BTC, which brings the firm’s total Bitcoin holdings to 461,000 BTC and is worth approximately $48 billion at the current market price, happened as the company’s shareholders voted for a 30x increase to the number of class A common shares.
Shareholders Voted to Allow More BTC Purchases
In developing its ambitious Bitcoin acquisition strategy, the company is said to have funded its latest purchase via stock sales that generated at least $1.1 billion in net proceeds after selling 3,012,072 shares between January 3rd and 20th, as indicated in their latest form 80k filing. According to the document, the company still retains $5.42 billion worth of shares it could sell under the current agreement, giving room for future purchases.
The firm’s BTC yield, a metric measuring the growth in its Bitcoin holdings relative to the outstanding shares, is currently at 1.69% year-to-date. For reference, the yield for the entire year of 2024 stood at an impressive 74.1%. MicroStrategy is running an ambitious capital-raising policy after the shareholders approved the proposal to raise the company’s common stock from 330 million to 10.3 billion, reflecting a thirty-fold expansion.
Bitcoin Acquisition Strategy Started In 2020
Led by the company’s executive Chairman, Michael Saylor, the MicroStrategy shareholders also voted to increase the number of authorized preferred stock shares, which now paves the way for more crypto buys to fund the aggressive Bitcoin acquisition strategy. After acquiring more BTC during the week ending January 19 at an average price of $101,191, the company’s overall average purchase price stood at $63,610.
Since posting the tweet, Saylor has been actively posting photos of himself on social media with incoming crypto czar David Sacks, Eric Trump, and Robert Kennedy Jr. The company founder and chairman launched the Bitcoin acquisition strategy in 2020 with an initial investment of $250 million. Since then, MicroStrategy has been on a BTC buying spree, and the size of its holdings is growing every year.
Company Stock has Surged 3000% with the BTC Plan.
Michael Saylor believes that buying Bitcoin and holding the digital asset long-term is a better way of guaranteeing returns for the company’s shareholders and fighting inevitable inflation. Saylor has separately referred to Bitcoin as digital gold, and, against all odds, the firm’s Bitcoin acquisition strategy is working.
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The company’s stock has surged over 3,000% since it initiated the BTC plan. Last December, the company joined Nasdaq-100, the index of the leading 100 non-financial companies on the stock market, alongside tech giants Microsoft and Apple, among others.
Conclusion
The company’s latest BTC acquisition of 11,000 BTC has come at a critical moment when the crypto community is eager for the outcome of the discussion surrounding crypto regulation in the United States. President Donald Trump campaigned on a pro-crypto approach, making huge promises to the digital asset industry, including promising to work towards making the US the crypto capital of the planet during the Nashville 2024 Bitcoin Conference.
During the conference, Trump stated,
“We will have regulations, but from now on, the rules will be written by the people who love your industry, not hate your industry.”
No one knows how long the crypto community that waited with bated breath for any sign after the January 20 inauguration will continue waiting for the journey toward the golden era of crypto to begin.
Frequently Asked Questions (FAQs)
What is MicroStrategy’s Bitcoin acquisition strategy?
MicroStrategy’s strategy focuses on acquiring BTC as a treasury reserve asset. Over time, the company plans to increase its Bitcoin stash by leveraging capital markets to make more purchases.
How much Bitcoin does the company own?
As of January 2025, the firm holds more than 461,000, or 1.6% of all Bitcoin that will ever exist. The company is now the world’s most significant corporate holder of Bitcoin.
What is the 21/21 Plan?
The 21/21 Plan is MicroStrategy’s initiative to try and raise $42 billion over the next three years to acquire more Bitcoin. The plan involves raising $21 billion through equity offerings and $21 billion via fixed-income securities.
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