Microstrategy Doubles Down on Bitcoin (BTC), Purchases 10K BTC Worth $1.1B

This comes after Microstrategy's latest buy. They just bought 10,107 BTC for $1.1B, bringing their total to 471,107 BTC. Average price per BTC was $64,511

Microstrategy has made its latest purchase of 10,107 BTC for $1.1B, bringing its total to 471,107 BTC.

The purchase was funded by selling 2.76M Class A common stock between Jan 21-26, as per a SEC filing.

This comes as part of Microstrategy’s ambitious “21/21 Plan,” which aims to raise $42 billion over three years through equity and fixed-income offerings.

Executive Chairman Michael Saylor views Bitcoin as a hedge against inflation and a long term store of value, stating that “Bitcoin is scarce and decentralized, it’s the perfect asset for wealth preservation”.

Saylor has also expressed his belief that Bitcoin could reach $13M per coin by 2045.

Microstrategy’s large-scale acquisitions of Bitcoin andskapet its strong conviction in the cryptocurrency’s potential for value preservation and appreciation over the long term.

The firm’s strategy has been to acquire and hold Bitcoin for the long term, rather than engaging in frequent trading activities.

This approach aligns with Saylor’s view of Bitcoin as a “digital gold” asset, which is typically held for extended periods to benefit from its scarcity and value appreciation over time.

In summary, Microstrategy’s latest purchase and capital raise are part of a broader strategy to expand its Bitcoin holdings and generate long-term value for shareholders.

The firm’s outlook on Bitcoin as a hedge against inflation and a valuable store of wealth over the coming decades is a key driver behind its sustained and substantial investment in the cryptocurrency.