MicroStrategy Acquires $1.1 Billion in Bitcoin, Aims for 500,000 BTC
MicroStrategy has purchased Bitcoin for the twelfth consecutive week, acquiring approximately 10107 BTC for around $1.1 billion from January 21 to January 26. This brings its total holdings to about 471,107 BTC, valued at roughly $30.4 billion, which constitutes over 2% of the total Bitcoin supply.
Future Acquisition Plans
- MicroStrategy plans to sell $250 million in perpetual preferred stock to finance further Bitcoin acquisitions.
- The preferred stock will offer an 8% fixed coupon and a conversion price of $1,000.
- The company's goal is to exceed 500,000 BTC in total holdings.
MicroStrategy is pursuing various fundraising strategies, aiming to raise $42 billion through 2027. Its stock has increased approximately 600% over the past year but saw a slight decline of 1.4% on recent trading. Bitcoin's price also dropped by about 2.5% to $101,500.
Capital Management Strategies
- MicroStrategy will redeem over $1 billion of its 0% Convertible Senior Notes due in 2027 by February 24 to enhance financial flexibility.
- This move allows for potential issuance of new convertible debt with longer maturities.
- The company plans to offer approximately 2.5 million shares of Series A perpetual strike preferred stock with quarterly dividends starting March 31.
- Shareholders approved an increase in authorized shares from 330 million to 10.3 billion for Class A common stock.
MicroStrategy aims to maintain liquidity and support its Bitcoin acquisition strategy without liquidating its holdings. The firm’s co-founder confirmed ongoing access to liquidity through capital markets activities and operations cash flows, emphasizing no intention to sell Bitcoin to meet interest obligations.