MicroStrategy buys another 10,107 bitcoin for $1.1 billion, bringing holdings to 471,107 BTC

Business intelligence firm and corporate bitcoin holder MicroStrategy acquired an additional 10,107 BTC for approximately $1.1 billion at an average price of $105,596 per bitcoin between Jan. 21 and Jan. 26, according to an 8-K filing with the Securities and Exchange Commission on Monday.

The company now holds 471,107 BTC, worth over $46 billion. MicroStrategy’s total holdings were bought at an average price of $64,511 per bitcoin, a total cost of around $30.4 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. To put that in perspective, MicroStrategy holds more than 2.2% of bitcoin’s total 21 million supply.

The latest acquisitions follow the sale of a further 2,765,157 MicroStrategy shares during the same period for the same amount. As of Jan. 26, the company said approximately $4.35 billion worth of shares remained available for sale as part of its “21/21 plan” targeting a total capital raise of $42 billion via equity and fixed-income securities offerings for bitcoin acquisitions.

On Tuesday, MicroStrategy shareholders expanded that plan by voting in favor of two amendments that will allow the company to increase the number of authorized Class A common stock and preferred stock to help make further bitcoin purchases.

On Friday, the firm opted to redeem $1.05 billion worth of 2027 convertible notes and to use MicroStrategy's shares to settle all conversion requests. The move could be an attempt to mitigate the company's debt and entice noteholders to convert to company equity amid uncertainty over the tax treatment of MicroStrategy’s bitcoin holdings under new FASB accounting rules in combination with provisions of the 2022 Inflation Reduction Act.

Three months of non-stop bitcoin acquisitions

MicroStrategy's latest announcement is now the twelfth week in a row following news last Monday that it had acquired another 11,000 BTC for roughly $1.1 billion in cash at an average estimated price of $101,191 per coin and $243 million worth of bitcoin the week before. Saylor shared an update on MicroStrategy’s bitcoin purchase tracker on Sunday, signaling the likelihood of another bitcoin acquisition filing on Monday.

MicroStrategy has acquired nearly $20 billion worth of bitcoin over the past few months alone, and its $87.2 billion market cap trades at a significant premium to its bitcoin net asset value, with some investors airing reservations about the firm's premium to NAV valuation and its equity and debt-funded bitcoin acquisition program in general.

MicroStrategy shares closed down 5.2% at $353.67 on Friday, having gained more than 681% over the past year, according to TradingView. MSTR is currently down 5.6% in pre-market trading on Monday.