On Tuesday, tech giant MicroStrategy bought an additional 11,000 bitcoins (BTC) for about $1.1 billion, as disclosed in a statement by its chairman and co-founder Michael Saylor. Social media post X (formerly Twitter).
The acquisition marks the company’s 11th consecutive week of bitcoin purchases, solidifying its position as a significant player in the digital currency space. Cellar has been at the forefront of this strategy, positioning the enterprise software company as a leveraged Bitcoin proxy.
MicroStrategy Bitcoin Holdings Surge
According to MicroStrategy Filing Along with the US Securities and Exchange Commission (SEC), the firm acquired bitcoin between January 13 and January 20 at an average price of about $101,191 per token.
With this latest purchase, the firm now owns more than 2% of all bitcoins that will ever be mined, representing approximately $47.9 billion in total bitcoin holdings. MicroStrategy is funding these acquisitions through a combination of Sale of stock on the market and convertible debt offerings.
The timing of this latest purchase coincides with a broader shift in the regulatory environment under President Donald Trump, who has transitioned from a crypto skeptic to a supporter of the industry.
This change is expected to create a more favorable regulatory framework for cryptocurrencies, prompting Sellers and MicroStrategy to accelerate their activities. capital goals and attempts to buy bitcoins.
Ahead of Trump’s inauguration, the firm’s co-founder also attended the first-ever “Crypto Ball” in Washington on Friday, where he mingled with key figures in the incoming administration.
New shares to support BTC strategy
In a related development, MicroStrategy shareholders Voted also approved a 30-fold increase in the number of authorized Class A common shares on Tuesday, increasing it from 330 million to 10.3 billion.
The decision, which passed with about 56% of the vote, is designed to facilitate more financing for the company’s bitcoin purchases, according to a Bloomberg report. In addition, shareholders voted to increase the authorized shares of preferred stock from 5 million to 1 billion.
These amendments will become effective upon MicroStrategy’s required filing Certificate of Amendment With the Delaware Secretary of State. The report notes that Chairman Saylor holds about 47% of the voting power, a result that was widely expected.
The newly authorized shares will also be used for various financing strategies, including private placements of Class A stock, sales of equity offerings on the market, and settlement of redemptions or conversions of convertible notes. However, the company has indicated that it may choose not to sell all of the additional shares.
At the time of writing, Bitcoin continues to experience significant price volatility, with its price hinting at a new record high. It is currently trading at $106,400, representing a 2.5% gain in the 24-hour period.
Featured image from DALL-E, chart from TradingView.com
