Strategy Boosts Bitcoin Holdings Above 500,000 BTC

MicroStrategy (NASDAQ: MSTR) disclosed in a regulatory filing that it had purchased 15,355 Bitcoin (BTC) last week, adding another $1.42 billion to its vast digital asset holdings.

According to a Form 8K filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the Tysons, Virginia-based software firm made the latest purchases at an average price of $92,737.

The company, known for its bold leadership in cryptocurrency investment, now holds a staggering 2.6% of Bitcoin’s 21 million tokens with a total of 553,555 BTC on the books.

At Monday’s closing price of $63,264, MicroStrategy’s Bitcoin treasury is valued at over $52 billion.

The latest Bitcoin buy was funded by the recent proceeds from two capital raisings.

Earlier this month, MicroStrategy announced that it had closed a new equity offering for $1 billion. The company also announced in March the completion of another capital raising, which saw it issue units of convertible preferred stock and warrants to purchase Class A common shares for net proceeds of $375 million.

After reporting a stellar fourth quarter of 2023, which saw MicroStrategy nearly double its Bitcoin holdings, the company is now more than halfway through its three-year roadmap to accumulate $42 billion worth of Bitcoin.

The company is planning to use corporate debt to finance a large portion of the remaining purchases.

Earlier this year, MicroStrategy co-founder and Executive Chairman Michael Saylor revealed that 13,000 institutions are direct shareholders of the company, while 814,000 accounts are held by retail investors.

Saylor also disclosed that an estimated 55 million investors have indirect exposure to MicroStrategy through products like ETFs, mutual funds, pensions, and insurance portfolios.

In October 2024, MicroStrategy unveiled its "21/21 Plan," which aims to raise $21 billion through an at-the-money equity offering program and another $21 billion through the issuance of fixed-income securities.

The company is planning to use the funds to expand its Bitcoin treasury and diversify its investment portfolio.

As institutions increasingly turn their attention to Bitcoin, investment banking firm Cantor Fitzgerald is preparing to launch a $3 billion crypto venture with the backing of SoftBank (9984.Tokyo), Bitfinex, and Tether.

Cantor's venture will reportedly hit the market with at least 42,000 BTC in its treasury, placing it among the top three largest Bitcoin holdings by publicly listed companies.