Summary:
MicroStrategy purchased 10,107 bitcoin for $1.1 billion last week.
Total bitcoin holdings now stand at 471,107, worth about $47 billion.
Shareholders approved increasing Class A shares to 10.3 billion.
Plans to offer 2,500,000 shares of Series A Preferred Stock for more bitcoin.
Stock price declined by 4%, reflecting broader market sell-off.
Key Takeaways
- MicroStrategy purchased 10,107 bitcoin for roughly $1.1 billion over the past week.
- The publicly-traded bitcoin treasury company now holds 471,107 bitcoin, valued at approximately $47 billion at current prices.
- MicroStrategy shareholders voted last week to increase its number of Class A common shares to 10.3 billion.
- The company plans to offer 2,500,000 in new shares of MicroStrategy’s Series A Perpetual Strike Preferred Stock to fund further bitcoin purchases.
MicroStrategy (MSTR) continues to demonstrate its commitment to bitcoin by purchasing an additional $1.1 billion worth of the cryptocurrency last week. This latest acquisition increases the firm's total holdings to 471,107 bitcoin.
The company has been leveraging equity sales and debt issuance to finance its bitcoin acquisitions, marking the twelfth consecutive week of such purchases. Last week, it issued approximately 2.76 million shares to support its latest buy.
In conjunction with these purchases, MicroStrategy received shareholder approval to increase the authorized number of its Class A common shares to 10.3 billion and its preferred stock to 1 billion. Additionally, the company announced a new offering of 2,500,000 shares of its Series A Perpetual Strike Preferred Stock.
MicroStrategy's strategy has inspired other publicly-traded companies, such as Marathon Digital and Semler Scientific, to consider bitcoin as a treasury asset. However, this approach has also drawn scrutiny due to its debt-heavy nature.
Despite this bullish strategy, MicroStrategy's stock, often viewed as a bitcoin proxy, saw a 4% decline recently, coinciding with bitcoin dipping below $100,000 amid a broader sell-off in cryptocurrency and equity markets.
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