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Cryptocurrency News Articles
MicroStrategy Doubles Down on Bitcoin, Buying Another 6,556 BTC for $555.8M
Apr 22, 2025 at 02:00 pm
In a bold move showing its unwavering faith in cryptocurrency, Strategy has snapped up an additional 6,556 Bitcoin (BTC) for $555.8 million.
In a move that continues to turn heads in the financial sphere, MicroStrategy (MSTR) has reportedly purchased an additional 6,556 Bitcoin (BTC) for $555.8 million.
The purchase, disclosed on April 21, 2025, further cements MicroStrategy’s standing as the largest corporate Bitcoin holder. Following the latest acquisition, the firm’s BTC hoard is estimated to be at a staggering 538,200 coins.
With Bitcoin’s price hovering at around $87,300, and no signs of slowing its crypto conquest, MicroStrategy is showcasing an unwavering faith in the digital asset.
Chart: Benzinga Pro
Stock Sales Fuel Bitcoin Buys
MicroStrategy funded its latest Bitcoin acquisition using cash from recent stock offerings.
Between April 14 and 20, the company sold 1.76 million Class A shares and 91,000 preferred shares. These sales brought in $547.7 million and $7.8 million, respectively.
The firm is known for its strategy of raising capital through the equity markets to buy Bitcoin. It’s an approach that allows it to be more flexible in its actions.
“Our ATM programs provide the liquidity to fund our Bitcoin strategy,” the company noted in its SEC filing.
Highlighting the capital backed by shareholders, MicroStrategy is able to sidestep traditional debt and maintain agility in navigating the volatile market.
A $36 Billion Bet: MicroStrategy’s Crypto Empire
To date, MicroStrategy has invested a staggering $36.47 billion in Bitcoin. The company’s journey in accumulating Bitcoin began in 2020.
This places MicroStrategy as a bellwether for the increasing adoption of cryptocurrencies by institutional investors.
The latest batch of coins was acquired at an average price of roughly $84,785 per BTC—a factor that contributes to the firm’s outstanding performance.
Also Read: Bitcoin, Ethereum, ShibomasToken Price Today: SHIB Surges On Shibarium Network Launch, BNB Remains In Consolidation
The firm’s Bitcoin holdings now account for nearly 2.5% of the cryptocurrency’s total supply.
MicroStrategy CEO, Michael Saylor, is a well-known advocate for Bitcoin, often referring to it as “digital gold.”
Stock Surges, Reflecting Bitcoin Rally
The news of MicroStrategy’s latest Bitcoin purchase sent its shares (MSTR) up by 2.77% in pre-market trading on Monday, April 21.
In other developments, Bitcoin experienced a rise of 3.1% to reach $87,300. This surge was likely sparked by the announcement of MicroStrategy’s increased bitcoin holdings and the ongoing rollout of bitcoin exchange-traded funds (ETFs).
The parallel rise of MSTR stock and bitcoin highlights the unique role that MSTR plays as a sort of bitcoin proxy for traditional investors who might not otherwise have such direct exposure.
However, despite the advantages, there are also some risks to consider.
The stock’s beta of 3.47 signals that it’s likely to move more drastically than the broader market, indicating high volatility.
Additionally, MicroStrategy’s current ratio stands at 0.71 as of the first quarter, which could raise concerns about the company’s liquidity in settling its short-term obligations.
But on the flip side, supporters of MicroStrategy highlight the fact that its massively unbalanced, bitcoin-heavy portfolio could yield long-term gains as cryptocurrencies continue to gain broader adoption.
‘21/21 Plan’: $42 Billion Blueprint
MicroStrategy’s latest bitcoin buy aligns with its ambitious "21/21 Plan," which was unveiled in October 2024.
This plan aims to raise $42 billion by 2027—half from equity and half from debt—to further expand the company’s bitcoin reserves.
So far, the company has raised $18.8 billion from stock sales and an additional $6.2 billion from convertible notes.
The firm also tracks what it calls “BTC Yield,” which measures the growth of bitcoin against any share dilution. With a 74.3% yield in 2024, the goal is to maintain an annual 6-10% BTC Yield through 2027.
“This metric ensures we’re generating returns for shareholders while maximizing our BTC position,” Saylor explained earlier this year.
Tax Break Cushions Q1 Loss
While MicroStrategy’s bitcoin bet has yielded gains overall, new accounting rules forced the company to report a staggering $5.91 billion realized loss on its bitcoin holdings in the first quarter of 2025.
However, a significant $1.69
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