By Samiat Jan, 22, 2025 Featured

MicroStrategy Adds $1.1 Billion in Bitcoin, Extending Its Aggressive Buying Streak

Key Highlights:

• MicroStrategy (MSTR) purchased $1.1 billion worth of bitcoin, adding 11,000 BTC to its holdings. The company now holds 461,000 bitcoin, valued at approximately $47 billion.
• This marks the 11th consecutive week of bitcoin acquisitions for the firm.
• The latest purchase was financed through the issuance and sale of shares.

Funding Strategy and Shareholder Vote:
MicroStrategy continues to fund its bitcoin purchases by selling shares and leveraging debt. The company previously announced plans to raise $42 billion over three years and expanded this goal by $2 billion earlier this year.

A shareholder vote is scheduled for Tuesday to decide whether to increase the company’s authorized Class A common stock from 330 million to 10.3 billion and preferred stock from 5 million to 1 billion. If approved, this move would enhance MicroStrategy’s capacity to issue shares to fund further bitcoin purchases.

Stock Performance:
MicroStrategy’s stock dropped 7% in early trading but recovered slightly, closing 3% lower. Over the past year, however, the stock has seen significant growth, gaining more than 690%.

Impact and Criticism:
While MicroStrategy’s aggressive bitcoin strategy has inspired other companies, such as Marathon Digital (MARA), it has faced criticism for relying heavily on debt and equity issuance.

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