A Bold Play: MicroStrategy's Bitcoin Bet
All Systems Go for Bitcoin Acquisition
Bitcoin Acquisition Bolsters Strategy by $1.4B, Approaching Limit of Equity Offering Program
MicroStrategy, previously known as Strategy, has taken a significant leap with its Bitcoin acquisitions, spending a whopping $1.4 billion last week - a move that adds another 15,355 Bitcoins to its already impressive stash. This recent purchase positions Strategy as the third-largest holder of Bitcoin among corporations, trailing only Grayscale's Bitcoin Trust and Tesla.
Based on current market prices, Strategy now owns approximately 554,000 Bitcoins, worth a staggering $52.3 billion. This makes Strategy's Tysons, Virginia-based Bitcoin treasury one of the most valuable in the corporate world. Notably, the company made a similar bulk purchase in late March, spending $1.9 billion on Bitcoin.
This latest Bitcoin buying spree was financed through a mix of sources, with 97% of the funds coming from the sale of 4 million common shares. Additionally, Strategy raised $37.5 million through the sale of its preferred stock, known as STRK.
The 21/21 Plan: A Roadmap to Bitcoin Dominance
In October, MicroStrategy unveiled an ambitious three-year plan, dubbed the "21/21 Plan." The strategy involves raising a massive $42 billion to buy Bitcoin, with $21 billion coming from an at-the-money equity offering program and the remaining $21 billion from issuing fixed-income securities like STRK. Following its latest purchase, Strategy has already passed the halfway mark in its quest to acquire Bitcoin worth $42 billion.
Since kicking off its equity offering program, Strategy has sold approximately $20.9 billion worth of common shares. It still retains $128 million in common shares for issuance and sale. Furthermore, Strategy can still sell $20.92 billion worth of STRK shares through a program established in March.
Riding the Bull Run
Despite the unstable market conditions, MicroStrategy's stock price has been on a rollercoaster ride. The stock recently tumbled about 1.2%, trading at $363 per share according to Yahoo Finance. However, the company's shares have rallied 14.5% over the past week as U.S. stocks partially recovered from the tariff-induced turmoil.
The Competition Heats Up
MicroStrategy's aggressive Bitcoin acquisition strategy is set to face new challenges, with Twenty One Capital making its Wall Street debut last week. Participated by stablecoin issuer Tether, crypto exchange Bitfinex, and Wall Street titans Cantor Fitzgerald and SoftBank, Twenty One Capital aims to amass at least 42,000 Bitcoins before it starts raising funds. If successful, the company will join the ranks of the top three corporate Bitcoin holders.
Disclaimer: This story was updated after publication to correct the figure regarding how much more worth of STRK shares can be sold.
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- The corporate world has a new heavyweight in Bitcoin ownership, as MicroStrategy, known previously as Strategy, now holds around 554,000 Bitcoins, worth a staggering $52.3 billion.
- Remarkably, MicroStrategy's Bitcoin treasury in Tysons, Virginia, is one of the most valuable corporate Bitcoin stashes globally.
- Last week, MicroStrategy spent $1.4 billion on Bitcoin, a move that catapulted it to the third-largest corporate Bitcoin holder, after Grayscale's Bitcoin Trust and Tesla.
- The company raised funds for its Bitcoin acquisitions through selling 4 million common shares and issuing $37.5 million in preferred stock, known as STRK.
- Following its ambitious "21/21 Plan," MicroStrategy has already passed the halfway mark in its mission to buy Bitcoin worth $42 billion.
- Meanwhile, Twenty One Capital, a new player in the crypto space, made its Wall Street debut last week and intends to acquire at least 42,000 Bitcoins, with the potential to join the ranks of the top three corporate Bitcoin holders.
- The crypto exchange and stablecoin issuer Bitfinex, along with Wall Street titans Cantor Fitzgerald and SoftBank, are among the participants in Twenty One Capital.
- Subscribe to our Daily Debrief Newsletter to stay updated on the latest trends, insights, and news in crypto, finance, business, technology, and more.
