TLDR
MicroStrategy has purchased 10,107 additional Bitcoins for $1.1 billion, bringing their total holdings to 471,107 BTC (approximately 2% of Bitcoin’s total supply)
The company is planning to sell $250 million in perpetual preferred stock with an 8% fixed coupon to fund further Bitcoin purchases
Shareholders approved increasing authorized shares from 330 million to 10.3 billion, enabling future equity offerings
MicroStrategy will redeem over $1 billion of Convertible Senior Notes ahead of schedule on February 24
Despite Bitcoin’s price decline to $101,500, MicroStrategy’s stock has grown 600% over the past year
MicroStrategy’s latest move in the cryptocurrency market has turned heads once again as the Virginia-based software company purchased 10,107 Bitcoin between January 21 and January 26, 2025. The purchase, valued at approximately $1.1 billion, brings the company’s total Bitcoin holdings to 471,107 BTC, worth about $30.4 billion at current market prices.
The purchase marks the twelfth consecutive week of Bitcoin acquisition for MicroStrategy, showcasing the company’s steady approach to building its cryptocurrency position. This latest addition represents roughly 2% of the total Bitcoin supply that will ever exist, making MicroStrategy one of the largest corporate holders of the digital currency.
To support its ongoing Bitcoin strategy, MicroStrategy has announced plans to sell $250 million in perpetual preferred stock. The offering includes an 8% fixed coupon and a conversion price of $1,000, though complete details remain private as the information has not been made public yet.
MicroStrategy has acquired 10,107 BTC for ~$1.1 billion at ~$105,596 per bitcoin and has achieved BTC Yield of 2.90% YTD 2025. As of 1/26/2025, we hodl 471,107 $BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin. $MSTR https://t.co/UM5dGUS9Ma
— Michael Saylor⚡️ (@saylor) January 27, 2025
The company’s fundraising efforts have been diverse and strategic. MicroStrategy has utilized various methods, including at-the-market stock sales and convertible debt offerings. The company aims to raise $42 billion in capital through 2027, demonstrating its long-term commitment to Bitcoin acquisition.
Market response to MicroStrategy’s strategy has been notably positive over the past year. The company’s stock has experienced tremendous growth, rising approximately 600% during this period. However, recent trading showed a slight decline of 1.4% to $348.65, while Bitcoin’s price experienced a 2.5% drop to $101,500.
In a move to streamline its financial obligations, MicroStrategy recently announced plans to redeem over $1 billion of its 0% Convertible Senior Notes. These notes, originally due in 2027, will be redeemed earlier than expected, with a redemption date set for February 24, 2025.
Benchmark analyst Mark Palmer noted that this early redemption strategy would allow investors to focus more clearly on the company’s operations rather than potential financial constraints. The move could also create opportunities for MicroStrategy to issue new convertible debt with extended maturities.
The company’s shareholders recently approved a substantial increase in authorized shares, expanding from 330 million to 10.3 billion for Class A common stock. This decision provides MicroStrategy with enhanced flexibility for future equity offerings and supports its ongoing Bitcoin acquisition strategy.
As part of its capital raising initiatives, MicroStrategy plans to offer approximately 2.5 million shares of Series A perpetual strike preferred stock. This new stock will hold senior status compared to the company’s Class A common stock and will provide regular quarterly dividends beginning March 31, 2025.
Michael Saylor, MicroStrategy’s co-founder, addressed concerns about the company’s liquidity position during a recent investor call. “We’ve had and expect to continue to have ample access to liquidity through our capital markets activities and cash flows from operations,” Saylor stated. He emphasized that the company has no plans to sell its Bitcoin holdings to meet interest obligations.
The company’s latest stock offering demonstrates its ability to raise capital without liquidating its Bitcoin position. MicroStrategy issued nearly 2.76 million new shares to finance its most recent Bitcoin purchase, showing the market’s continued appetite for the company’s equity.
Over the past twelve weeks, MicroStrategy has maintained a consistent Bitcoin buying schedule, utilizing both equity sales and debt issuance to fund its purchases. This systematic approach has established the company as a leading corporate investor in the cryptocurrency space.
Recent market activity showed MicroStrategy’s stock experiencing a four percent decline in trading, aligning with broader market movements in both cryptocurrency and equity sectors. Bitcoin’s price dropped below $100,000 during this period.
The number of authorized preferred shares has been set at 1 billion, providing additional flexibility for future capital raising efforts. This expansion of available shares allows MicroStrategy to continue its Bitcoin acquisition strategy without compromising its existing holdings.
