MicroStrategy has announced plans to raise additional funds to expand its Bitcoin holdings through a public offering of Strike Preferred Stock (STRK), according to a Jan. 27 statement. The company aims to issue 2.5 million shares of its Series A Perpetual Strike Preferred Stock, subject to regulatory approval and prevailing market conditions. The offering’s proceeds […]
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Shares of Cipher Mining and Core Scientific are trading down 30%, while other miners are down about 20-25%.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
MicroStrategy has added to its bitcoin stash for 12 consecutive weeks.
Michael Saylor previously said MSTR aims to offer investors "both returns and volatility at factors of 1.5x those of bitcoin itself."
The bitcoin acquisitions follow MicroStrategy's latest sale of shares during the same period, equivalent to the same value.
MicroStrategy may have to pay up to $18 billion in realized bitcoin gains despite the firm never selling a token, WSJ reports.
On Tuesday, tech giant MicroStrategy purchased an additional 11,000 Bitcoin (BTC) for approximately $1.1 billion, as disclosed by its chair and co-founder Michael Saylor in a social media post on X (formerly Twitter). This acquisition marks the company’s 11th consecutive week of Bitcoin purchases, reinforcing its status as a significant player in the digital currency space. Saylor has been at the forefront of this strategy, positioning the enterprise software company as a leveraged Bitcoin proxy. MicroStrategy Bitcoin Holdings Surge According to Microstrategy’s filing with the US Securities and Exchange Commission (SEC), the firm acquired the Bitcoin at an average price of about $101,191 per token between January 13 and January 20. With this latest purchase, the firm now holds over 2% of all Bitcoin that will ever be mined, representing approximately $47.9 billion in total Bitcoin holdings. MicroStrategy has been funding these acquisitions through a combination of at-the-market stock sales and convertible debt offerings. Related Reading: Bitcoin Struggles For Direction Post-Trump Disappointment – What Next? The timing of this latest purchase aligns with a broader shift in the regulatory environment under President Donald Trump, who has transitioned from being a crypto skeptic to a supporter of the industry. This change is expected to create a more favorable regulatory framework for cryptocurrencies, prompting Saylor and MicroStrategy to accelerate their capital goals and Bitcoin buying efforts. Ahead of Trump’s inauguration, the firm’s co-founder even attended the first ever “Crypto Ball” in Washington on Friday, where he engaged with key figures in the incoming administration. New Shares To Support BTC Strategy In a related development, MicroStrategy shareholders voted also on Tuesday to approve a staggering 30-fold increase in the number of authorized Class A common shares, raising it from 330 million to 10.3 billion. According to a Bloomberg report, this decision, which passed with around 56% of the vote, is designed to facilitate further financing for the company’s Bitcoin purchases. Additionally, shareholders voted to increase the authorized shares of preferred stock from 5 million to 1 billion. Related Reading: Is It Time To Give Up On Ethereum Below $4,000? Analyst Weighs The Facts These amendments will take effect once MicroStrategy files the necessary certificate of amendment with the Delaware Secretary of State. The report notes that with Chairman Saylor holding about 47% of the voting power, the outcome was largely anticipated. The newly authorized shares will also be utilized for various financial strategies, including private transactions of Class A stock, sales of at-the-market equity offerings, and settling redemptions or conversions of convertible notes. However, the company has indicated that it may choose not to sell all of the additional shares. At the time of writing, Bitcoin continues to experience significant price volatility, with its price hinting at a new record high. It is currently trading at $106,400, representing a 2.5% increase in the 24-hour time frame. Featured image from DALL-E, chart from TradingView.com
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Its the 11th consecutive week of bitcoin purchases for the Michael Saylor-led company.
MicroStrategy shareholders approved two amendments to increase the number of authorized stock.
The bitcoin acquisitions follow MicroStrategy's latest sale of shares during the same period, equivalent to the same value.
Michael Saylor, CEO of MicroStrategy, and key executives from Marathon Digital, a prominent Bitcoin mining firm, have engaged with representatives of President-elect Donald Trump’s incoming administration. The meeting, held during a reception hosted by Vice President JD Vance, signals potential movement in Bitcoin policy under the new administration. While details of the discussions remain private, […]
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MicroStrategy's Bitcoin holdings are currently valued at approximately $47.3 billion, and the company is up nearly 69% on its investment.
Benchmark-Hosted an investor meeting with MicroStrategy’s executive chairman Michael Saylor.
Saylor said bitcoin and other capital markets each had distinct “moods” that he and his MSTR team would look to react to.
There is a danger that forced or panic selling could lead to further bitcoin weakness and a break below $90K could lead to a 10% retracement, the report said.
As Bitcoin (BTC) retests the $90,000 price level after tumbling almost 9% in the past week, institutional investors and corporations are seizing the pullback as an opportunity to increase their BTC reserves. Business intelligence firm MicroStrategy is one such entity, having purchased 2,530 BTC during the ongoing market downturn. MicroStrategy Buys The Bitcoin Dip Undeterred […]
The company now owns more than $192 million worth of BTC and touts a "Bitcoin yield" of more than 99%, it said.
The Michael Saylor-led company added to its bitcoin stack for the 10th consecutive week.
According to the SaylorTracker website, MicroStrategy's Bitcoin holdings are up around 51%, with unrealized gains of over $14 billion.
CleanSpark, a leading Bitcoin mining firm, has surpassed 10,000 BTC in its corporate treasury, according to a Jan. 9 statement. The firm said it now holds 10,097 BTC, which were sourced entirely from its US-based mining operations. This represents a staggering 236% increase in its Bitcoin reserves compared to the previous year. The milestone also […]
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Critics call it heedless; supporters say it’s brilliant. Either way, Michael Saylor continues doubling down on Bitcoin.
MicroStrategy has the highest 30-day implied volatility of any magnificent seven stocks.
MicroStrategy, the major enterprise software company that has evolved into a Bitcoin (BTC) investment platform, has captured attention once again with its latest purchase of $101 million in BTC. The company, led by chairman and co-founder Michael Saylor, has committed to utilizing perpetual preferred stock, common shares, and debt to fuel its ongoing Bitcoin purchasing strategy. MicroStrategy Eyes $42 Billion Capital Raise By 2027 In a filing with the US Securities and Exchange Commission (SEC), MicroStrategy disclosed that it purchased 1,070 Bitcoin tokens at an average price of approximately $94,000 on December 30 and 31, 2024. This brings the company’s total Bitcoin holdings to an impressive 447,470 BTC, acquired for around $27.97 billion at an average price of $62,503 per Bitcoin. Notably, Saylor highlighted in a social media post on X (formerly Twitter), that the company achieved a Bitcoin yield of 48% for the fourth quarter of 2024 and 74.3% for the entire fiscal year. Related Reading: XRP Eyes $11 Breakout, But A Correction Might Come First—Analyst MicroStrategy’s ambitious plans extend beyond Bitcoin acquisitions. On Friday, the firm announced its intention to raise up to $2 billion through offerings of perpetual preferred stock, which will hold seniority over its Class A common stock. This move is part of a larger strategy to raise $42 billion in capital by 2027 through various means, including at-the-market stock sales and convertible debt offerings. With more than two-thirds of its equity goals already met, the company is expected to pivot towards fixed-income markets in the near future. The demand for MicroStrategy’s stock (MSTR) has notably increased among hedge funds, which are employing convertible arbitrage strategies that involve purchasing bonds and short-selling shares. This strategy capitalizes on the volatility of MicroStrategy’s stock, a characteristic that has become a cornerstone of its business model. Benchmark analyst Mark Palmer remarked: That volatility itself is a key element of MicroStrategy’s approach because it enables the company to tap into the capital markets and particularly the convertible bond market more easily. MicroStrategy’s recent proposal to increase the number of authorized shares of Class A common stock from 330 million to 10.3 billion has sparked fears of share dilution, leading to a significant drop in the company’s stock price. MicroStrategy’s Bold Bitcoin Strategy Faces Headwinds On the day of the proxy filing in December, shares fell by as much as 9.6%. Adam Kobeissi, founder of The Kobeissi Letter, noted the dilemma faced by investors, stating: It’s a lose-lose because on one hand you have people saying that it’s dilutive and they’re selling the stock… but on the other hand you have people saying if it doesn’t pass, then they can’t keep buying Bitcoin and the whole investment strategy is kind of broken. A vote on the share increase is scheduled for January 21, 2025, and with Saylor being a significant shareholder, the amendment is expected to pass. Should it be approved, the increase in shares could lead to further volatility in MicroStrategy’s stock price as the company becomes more leveraged. Although the company has typically outperformed Bitcoin, it has faced challenges in recent months, underlining that its performance is influenced by factors beyond just cryptocurrency prices. Related Reading: Ethereum Price on the Rise: Can Momentum Fuel Bigger Gains? Despite the recent fluctuations, Palmer maintains a “buy” rating on MicroStrategy’s stock. He believes the market’s reaction to the proposed share increase has been an overreaction. “The company’s strategy has been to issue shares to make accretive Bitcoin purchases which can accrue to the benefit of shareholders,” he commented. MicroStrategy’s aggressive approach to Bitcoin acquisitions has seen it make significant purchases exceeding $1 billion in late 2024, although recent weeks have seen a slowdown in these activities amidst fluctuating Bitcoin prices. Palmer reassured investors, stating, “We’ve seen a pull forward of the company’s strategy, which is not indicative of a slowdown… it’s more a reflection of the aggressive approach that the company has taken.” At the time of writing, the market’s leading crypto is inching closer to the $100,000 milestone, trading at $99,340, up 2% in the last 24 hours. Featured image from DALL-E, chart from TradingView.com
MicroStrategy began 2025 by announcing a fresh BTC purchase made in the last two days of 2024.
MicroStrategy Purchases More Bitcoin, Adding to Holdings for 9th Consecutive Week.
MicroStrategy Purchases More Bitcoin, Adding to Holdings for 9th Consecutive Week.
According to data from the SaylorTracker website, MicroStrategy currently holds 446,400 Bitcoin, valued at approximately $43.7 billion.
A US-based development and business intelligence company will push through with its plan to build up its Bitcoin holdings, implementing its strategy of obtaining significant cryptocurrency investments. Despite amassing a huge amount of Bitcoin, MicroStrategy plans to increase its BTC holdings using the estimated $2 billion it will generate from its preferred stock offering. Related […]