MicroStrategy expands Bitcoin holdings by $1.1B

MicroStrategy has made headlines once again with its recent acquisition of 10,107 Bitcoin (CRYPTO:BTC) for approximately $1.1 billion, as announced by co-founder Michael Saylor on January 27, 2025.  

This latest purchase brings the company's total Bitcoin holdings to an impressive 471,107 BTC, solidifying its position as the largest corporate holder of the cryptocurrency.  

The acquisition occurred between January 21 and January 26, during a period when Bitcoin's price fell below $100,000 for the first time since Donald Trump's presidency.  

Despite this downturn, MicroStrategy's aggressive buying strategy continues, marking the firm's twelfth consecutive week of Bitcoin purchases.  

Saylor's announcement coincided with a slight rebound in Bitcoin prices, which experienced a brief increase following the news of MicroStrategy's acquisition.  

The company has adopted a unique strategy to fund its Bitcoin purchases, initially using corporate cash and later turning to debt issuance through convertible notes and other financial instruments.  

In October 2024, MicroStrategy entered into a sales agreement known as the "21/21 plan," allowing it to raise up to $21 billion by issuing shares.  

From January 21 to January 26 alone, MicroStrategy sold over 2.76 million shares to finance this latest Bitcoin purchase.  

The firm’s approach has inspired other companies globally to consider similar investments in Bitcoin.  

For instance, Japanese firm Metaplanet has accumulated 1,762 BTC and plans to increase its holdings significantly in 2025.  

Meanwhile, Fathom Holdings announced intentions to allocate up to $500,000 toward Bitcoin investments.  

As MicroStrategy continues its Bitcoin accumulation strategy, it faces scrutiny regarding its reliance on debt and equity sales to fund these purchases.  

Nonetheless, Saylor remains optimistic about Bitcoin's long-term potential and is committed to expanding the company's cryptocurrency portfolio.  

"Our strategy reflects our belief in Bitcoin as a key asset for the future," he stated recently.

At the time of reporting, the Bitcoin (BTC) price was $102,120.