Source: financemagnates, 30/12/2024
Micro Strategy continued its aggressive strategy of buying bitcoin, buying an additional 2,138 bitcoins for $209 million, bringing its total holdings to 446,400 bitcoins.
This purchase, which took place on December 29, marked the eighth consecutive week of bitcoin purchases, cementing the company’s position as the largest bitcoin holder among listed companies.
Expanding Bitcoin holdings
Bitcoin purchases made by Micro Strategy have attracted attention in the financial world, not only because of their size but also because of the consistent strategy behind them.
The company reportedly funded this latest purchase through its ongoing market-in (ATM) program, which allows it to sell shares to raise funds. Micro Strategy is said to still have $6.88 billion available under this program. After adding 2138 bitcoins, Michael Seller, CEO and co-founder of Micro Strategy, posted on X: Confusing blue lines on SaylorTracker.com
The average purchase price for this latest batch of bitcoin was $97,837, slightly increasing the company’s overall average to $62,428 per bitcoin. Micro Strategy unveiled its ambitious “21/21 plan” this year, which aims to buy an additional $42 billion in bitcoin over the next three years.
The plan includes raising $21 billion through equity sales and another $21 billion through fixed-income securities. In its latest filing, the company sought shareholder approval to expand the share issue, enabling it to fund this ongoing wave of bitcoin purchases.
This approval will allow Micro Strategy to increase its authorized shares for both Class A common stock and preferred shares. The proposed amendments will significantly increase the number of shares available for issue, putting the company in a position to continue its Bitcoin-focused strategy without financial constraints.
Micro Strategy’s 21/21 plan has already seen remarkable progress. In December alone, the company bought more bitcoins than most previous months, totaling 42,162 bitcoins, worth more than $4 billion at current prices.
As of December 22, Micro Strategy and its affiliates held about 444262 bitcoins, worth about $43.5 billion. This inventory was acquired at an average price of $62,257 per bitcoin, which means that the company’s holdings of bitcoin have already skyrocketed. The company has also set its goal of generating an annual return of 6% to 10% of bitcoin assets between 2025 and 2027.
The plan includes raising $21 billion through equity sales and another $21 billion through fixed-income securities. In its most recent filing, the company sought shareholder approval to expand the share issue, enabling it to fund this ongoing wave of bitcoin purchases.
