MicroStrategy expands Bitcoin holdings with $243m purchase

The company’s approach has attracted interest from hedge funds exploring arbitrage opportunities due to the volatility of its stock amidst plans for equity expansion.
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MicroStrategy Inc. has bolstered its position as a Bitcoin powerhouse, purchasing $243 million worth of the cryptocurrency in its 10th consecutive weekly acquisition. The company, based in Virginia, now controls over 2% of Bitcoin’s finite supply, continuing a strategy initiated by co-founder and Chairman Michael Saylor in 2020.

The firm acquired 2,530 Bitcoin between 6 and 12 January at an average price of $95,972 per token, according to a regulatory filing. With plans to raise $42 billion in capital by 2027 through stock sales and debt offerings, MicroStrategy intends to invest heavily in Bitcoin. It has already reached two-thirds of its equity-raising goals in just a few months and could potentially purchase an additional $6.5 billion in Bitcoin.

MicroStrategy’s shares have risen 13% this year, closing at $327.91 last week, while Bitcoin itself has experienced a slight dip, losing 3% in value after a 120% surge in 2024. The firm’s approach has drawn attention from hedge funds employing convertible arbitrage strategies, betting on the volatility of MicroStrategy’s stock as the company advances plans to expand its equity offerings.