MicroStrategy’s $1.1 Billion Bitcoin Bet: What’s Next for the Bitcoin Giant

MicroStrategy Now Holds Over 2% of All Bitcoin with $1.1 Billion Purchase
MicroStrategy to Boost Bitcoin Holdings with $1.1 Billion Buy, Seeks to Increase Share Count
Bitcoin Giant MicroStrategy Purchases $1.1 Billion More, Gears Up for Shareholder Vote
MicroStrategy Makes Huge Bitcoin Move and Preps for Major Shareholder Decision
MicroStrategy’s Bold $1.1 Billion Bitcoin Purchase: A New Chapter for the Company

MicroStrategy Purchases $1.1 Billion in Bitcoin, Gears Up for Major Shareholder Vote

MicroStrategy Inc. has made another massive Bitcoin purchase, buying $1.1 billion worth of the cryptocurrency as part of its ongoing investment strategy. The company is also preparing for a shareholder vote that will allow it to increase its authorized Class A shares by 30 times.

This marks the 11th consecutive week of Bitcoin purchases for MicroStrategy, solidifying its role as a major player in the Bitcoin market. The company, led by co-founder and Chairman Michael Saylor, now owns over 2% of the total Bitcoin supply that will ever exist. Since January 13, MicroStrategy has acquired 11,000 Bitcoin at an average price of about $101,191 per coin, bringing the company’s total Bitcoin holdings to around $47.9 billion.

To fund these Bitcoin acquisitions, MicroStrategy has been utilizing stock sales and convertible debt offerings. The company plans to raise $42 billion through these offerings by 2027. Hedge funds have contributed to the demand for these offerings, using convertible arbitrage strategies by buying the bonds and short-selling the stock, betting on the company’s volatility.

The company has accelerated its Bitcoin purchases since the election of President Donald Trump, whose administration is expected to offer a more favorable regulatory environment for cryptocurrency. Saylor also attended the Crypto Ball in Washington ahead of Trump’s inauguration, where he met with members of the president’s incoming cabinet and family.

Shareholders are set to vote on Tuesday on whether to approve increasing the number of authorized shares of MicroStrategy’s Class A common stock from 330 million to 10.3 billion, and increasing the number of authorized preferred stock shares from 5 million to 1 billion. These amendments are likely to pass, with Saylor holding around 47% of the voting power.

MicroStrategy has approximately $5.42 billion in equity offerings left under its capital plan, and increasing share sales will help fund future Bitcoin purchases.

MicroStrategy’s stock has surged 37% this year, closing at $396.50 on Friday.

Also Read – 

Crypto’s Wild West Days Could Be Over Under Trump’s Leadership