MicroStrategy (NASDAQ: MSTR), the enterprise software company turned Bitcoin (BTC) proxy, has extended its Bitcoin buying spree to 11th consecutive week, adding 11,000 BTC worth $1.1 billion to its portfolio.
This latest acquisition, executed at an average price of $101,191 per Bitcoin, brings the firm’s total Bitcoin holdings to 461,000 BTC, valued at $48 billion at current market prices.
With a cumulative investment of approximately $29 billion and an average acquisition cost of $63,610 per BTC, MicroStrategy now controls over 2% of Bitcoin’s finite supply.
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Funding through stock sales
MicroStrategy funded its latest Bitcoin purchase through stock sales, generating $1.1 billion in net proceeds from the sale of 3,012,072 shares between January 13 and 20, as noted in a recent Form 8-K filing.
As of January 20, 2025, the company still has $5.42 billion worth of shares available for sale under its current sales agreement, providing flexibility for future acquisitions.
The company’s Bitcoin yield, a metric that measures growth in Bitcoin holdings relative to outstanding shares, currently stands at 1.69% year-to-date. In comparison, the yield for the full year of 2024 was an impressive 74.1%.
MicroStrategy secures shareholder approval for stock expansion
MicroStrategy’s ambitious capital-raising efforts gained momentum as shareholders approved a proposal to increase the company’s authorized Class A common stock from 330 million to 10.3 billion—a staggering thirty-fold expansion.
Moreover, shareholders also voted to raise the number of authorized preferred stock shares, paving the way for the company to strengthen its financial position and fund its aggressive Bitcoin acquisition strategy
However, the proposal initially raised concerns among investors, as the substantial increase in shares could significantly dilute the value of existing holdings.
As reported by Finbold, such dilution might push MicroStrategy’s stock price below $100 by 2025, particularly if Bitcoin’s volatility continues to weigh on the company’s financial outlook.
MSTR stock and BTC price analysis
The announcement comes amid a volatile period for Bitcoin, where BTC experienced a sharp correction after reaching an all-time high above $109,000 on January 20, dropping to a low of $100,000 before rebounding to around $106,000 at press time.
Meanwhile, MSTR is trading at $386.44, down 0.09% on the day, reflecting the broader market’s reaction to Bitcoin’s volatility and lingering concerns over the potential dilution of shareholder value.
Featured image via Shutterstock
