MicroStrategy Expands Its Bitcoin Empire: Acquires 11,000 BTC For $1.1 Billion

On Tuesday, tech giant MicroStrategy purchased an additional 11,000 Bitcoin (BTC)  for approximately $1.1 billion, as disclosed by its chair and co-founder Michael Saylor in a social media post on X (formerly Twitter). 

This acquisition marks the company’s 11th consecutive week of Bitcoin purchases, reinforcing its status as a significant player in the digital currency space. Saylor has been at the forefront of this strategy, positioning the enterprise software company as a leveraged Bitcoin proxy.

According to Microstrategy’s filing with the US Securities and Exchange Commission (SEC), the firm acquired the Bitcoin at an average price of about $101,191 per token between January 13 and January 20. 

With this latest purchase, the firm now holds over 2% of all Bitcoin that will ever be mined, representing approximately $47.9 billion in total Bitcoin holdings. MicroStrategy has been funding these acquisitions through a combination of at-the-market stock sales and convertible debt offerings. 

The timing of this latest purchase aligns with a broader shift in the regulatory environment under President Donald Trump, who has transitioned from being a crypto skeptic to a supporter of the industry. 

This change is expected to create a more favorable regulatory framework for cryptocurrencies, prompting Saylor and MicroStrategy to accelerate their capital goals and Bitcoin buying efforts. 

Ahead of Trump’s inauguration, the firm’s co-founder even attended the first ever “Crypto Ball” in Washington on Friday, where he engaged with key figures in the incoming administration.

In a related development, MicroStrategy shareholders voted also on Tuesday to approve a staggering 30-fold increase in the number of authorized Class A common shares, raising it from 330 million to 10.3 billion. 

According to a Bloomberg report, this decision, which passed with around 56% of the vote, is designed to facilitate further financing for the company’s Bitcoin purchases. Additionally, shareholders voted to increase the authorized shares of preferred stock from 5 million to 1 billion.

These amendments will take effect once MicroStrategy files the necessary certificate of amendment with the Delaware Secretary of State. The report notes that with Chairman Saylor holding about 47% of the voting power, the outcome was largely anticipated.

The newly authorized shares will also be utilized for various financial strategies, including private transactions of Class A stock, sales of at-the-market equity offerings, and settling redemptions or conversions of convertible notes. However, the company has indicated that it may choose not to sell all of the additional shares.

At the time of writing, Bitcoin continues to experience significant price volatility, with its price hinting at a new record high. It is currently trading at $106,400, representing a 2.5% increase in the 24-hour time frame. 

Featured image from DALL-E, chart from TradingView.com