MicroStrategy Adds $1.1 Billion in Bitcoin, Extending Its Aggressive Buying Streak
Key Highlights:
MicroStrategy continues to fund its bitcoin purchases by selling shares and leveraging debt. The company previously announced plans to raise $42 billion over three years and expanded this goal by $2 billion earlier this year.
A shareholder vote is scheduled for Tuesday to decide whether to increase the company’s authorized Class A common stock from 330 million to 10.3 billion and preferred stock from 5 million to 1 billion. If approved, this move would enhance MicroStrategy’s capacity to issue shares to fund further bitcoin purchases.
Stock Performance:
MicroStrategy’s stock dropped 7% in early trading but recovered slightly, closing 3% lower. Over the past year, however, the stock has seen significant growth, gaining more than 690%.
Impact and Criticism:
While MicroStrategy’s aggressive bitcoin strategy has inspired other companies, such as Marathon Digital (MARA), it has faced criticism for relying heavily on debt and equity issuance.
Key Highlights:
- MicroStrategy (MSTR) purchased $1.1 billion worth of bitcoin, adding 11,000 BTC to its holdings. The company now holds 461,000 bitcoin, valued at approximately $47 billion.
- This marks the 11th consecutive week of bitcoin acquisitions for the firm.
- The latest purchase was financed through the issuance and sale of shares.
MicroStrategy continues to fund its bitcoin purchases by selling shares and leveraging debt. The company previously announced plans to raise $42 billion over three years and expanded this goal by $2 billion earlier this year.
A shareholder vote is scheduled for Tuesday to decide whether to increase the company’s authorized Class A common stock from 330 million to 10.3 billion and preferred stock from 5 million to 1 billion. If approved, this move would enhance MicroStrategy’s capacity to issue shares to fund further bitcoin purchases.
Stock Performance:
MicroStrategy’s stock dropped 7% in early trading but recovered slightly, closing 3% lower. Over the past year, however, the stock has seen significant growth, gaining more than 690%.
Impact and Criticism:
While MicroStrategy’s aggressive bitcoin strategy has inspired other companies, such as Marathon Digital (MARA), it has faced criticism for relying heavily on debt and equity issuance.