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.
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.