MicroStrategy, a software company, has increased its Bitcoin (BTC) reserves by procuring an additional 10,107 BTC today, in anticipation of its Monday decline.
Michael Saylor, the Executive Chairman of MicroStrategy, disclosed that the company had spent approximately $1.1 billion to acquire the 10,107 BTC at an average price of $105,596 per BTC between January 21 and January 26.
The Tysons, Virginia-based company currently has a staggering 471,107 BTC, which is valued at approximately $47 billion. The average price of the alpha crypto is $64,511 per Bitcoin, and the company has spent a total of $30.4 billion on it.
CoinGecko data indicates that Bitcoin is currently trading at approximately $99,808, having fallen as low as $97,791 on Monday morning amid a crypto-wide market carnage.
MicroStrategy’s Saylor initiated the company’s Bitcoin purchasing master plan in 2020 and has continued to do so ever since. However, it has accelerated its accumulation in the past 12 weeks, announcing a new BTC purchase every week during that time. The company has since resorted to debt issuance, such as senior secured notes and convertible notes, to fund its aggressive BTC acquisition campaign.
Saylor is of the opinion that Bitcoin is the most effective inflation hedge and a method for generating superior returns for shareholders in the long term. He encourages other organizations to replicate this approach.
The “21/21 Plan” is a sales agreement that MicroStrategy engaged into last October. This agreement enables the company to raise up to $42 billion through equity and fixed-income securities offerings in order to finance Bitcoin acquisitions.
In order to facilitate additional Bitcoin acquisitions, MicroStrategy shareholders voted in favor of a 30x increase in the number of authorized Class A common shares on January 21.
Similar to previous periods, MicroStrategy’s most recent acquisition was satisfied through stock sales. The company sold 2.76 million shares over the past week, resulting in $1.1 billion in net proceeds, according to a Jan. 27 SEC filing. As of January 26, the company currently has $4.35 billion in shares available for sale under their sales agreement.
The strategy began to gain momentum among other publicly listed companies years after MicroStrategy pioneered the large-scale corporate adoption of Bitcoin. Elon Musk’s Tesla & SpaceX, Semler Scientific, a medical technology firm, and Metaplanet, a Japanese company, are among the other notable BTC holders.
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