On Tuesday, the tech powerhouse MicroStrategy acquired an additional 11,000 Bitcoin (BTC) for roughly $1.1 billion, as revealed by its chair and co-founder Michael Saylor in a social media update on X (formerly known as Twitter).
This purchase signifies the firm’s 11th consecutive week of Bitcoin acquisitions, solidifying its position as a notable contender in the cryptocurrency realm. Saylor has been leading this approach, establishing the business software firm as a leveraged Bitcoin proxy.
Surge in MicroStrategy’s Bitcoin Holdings
As per Microstrategy’s submission to the US Securities and Exchange Commission (SEC), the company purchased the Bitcoin at an average cost of around $101,191 per token between January 13 and January 20.
With this latest transaction, the organization now retains over 2% of all Bitcoin that will ever be mined, reflecting an approximate $47.9 billion in overall Bitcoin assets. MicroStrategy has been financing these acquisitions through a mixture of at-the-market stock offerings and convertible bonds.
The timing of this recent acquisition coincides with a broader transformation in the regulatory landscape under President Donald Trump, who has evolved from a crypto doubter to a proponent of the sector.
This transformation is anticipated to foster a more advantageous regulatory framework for digital currencies, prompting Saylor and MicroStrategy to hasten their financial targets and Bitcoin purchasing initiatives.
Prior to Trump’s inauguration, the organization’s co-founder even participated in the inaugural “Crypto Ball” in Washington on Friday, where he interacted with prominent figures in the incoming administration.
New Shares to Bolster BTC Strategy
In a related development, MicroStrategy stakeholders approved on Tuesday a dramatic 30-fold increase in the quantity of authorized Class A common shares, elevating it from 330 million to 10.3 billion.
According to a Bloomberg report, this resolution, which passed with around 56% backing, is aimed at enabling additional funding for the company’s Bitcoin acquisitions. Moreover, shareholders agreed to raise the permitted shares of preferred stock from 5 million to 1 billion.
These modifications will come into effect once MicroStrategy submits the required certificate of amendment to the Delaware Secretary of State. The report highlights that since Chairman Saylor possesses approximately 47% of the voting rights, the result was largely anticipated.
The newly authorized shares will also be employed for various financial maneuvers, including private transactions of Class A stock, sales of at-the-market equity offerings, and settling redemptions or conversions of convertible notes. Nevertheless, the company has indicated that it might opt not to sell all the additional shares.
At the moment of writing, Bitcoin continues to encounter notable price fluctuations, with its price suggesting a new record peak. It is presently trading at $106,400, which indicates a 2.5% rise in the 24-hour period.
Featured image from DALL-E, chart from TradingView.com
