TL;DR

MicroStrategy ended its bitcoin buying streak after 12 consecutive weeks, not acquiring any more BTC between January 27 and February 2, 2025.
The company holds 471,107 BTC, worth over $44 billion, purchased at an average price of $64,511 each.
The firm raised $563.4 million through the issuance of preferred stock, allocated for future bitcoin purchases under its “21/21” plan.

MicroStrategy has decided to end its continuous Bitcoin buying streak after acquiring BTC for 12 consecutive weeks.

The company did not make any purchases between January 27 and February 2, 2025, as reported in a filing with the U.S. Securities and Exchange Commission (SEC). The firm, known for its ongoing bitcoin accumulation strategy, did not sell any of its class A shares under its at-the-market equity offering program to fund new acquisitions.

2.2% of Bitcoin’s Supply

Despite this pause in purchases, MicroStrategy’s total bitcoin holdings remain substantial, totaling 471,107 BTC, valued at over $44 billion. These BTC were acquired at an average price of $64,511 each, meaning the company’s total investment in the cryptocurrency is approximately $30.4 billion. With this amount, the firm owns more than 2.2% of the total available supply of bitcoin.

The company’s approach to financing its acquisitions has included the issuance of preferred stock, which allowed it to raise $563.4 million. These funds are intended for future bitcoin purchases, aligning with the company’s long-term goal of its “21/21” plan, which aims to raise $42 billion through equity and debt offerings for bitcoin acquisitions.

Uncertainty Regarding MicroStrategy’s Valuation

Despite the recent decline in Bitcoin’s price, some analysts, such as those from Mizuho Securities, predict that BTC’s price could increase by up to 30% over the next three years. However, some investors express concerns about the high valuation of MicroStrategy’s shares relative to its bitcoin assets, due to the significant gap between its net asset value (NAV) and its share price.

Regarding the performance of its stock, MicroStrategy saw a 567% increase over the past year, although last Friday, its shares closed down 1.6%. This adjustment was compounded by a 7.3% drop in pre-market trading on Monday

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Filed under: News - @ February 3, 2025 4:54 pm