MicroStrategy Inc. Expands Bitcoin Holdings With $593.3 Million Purchase
MicroStrategy Inc.’s chairman and co-founder, Michael Saylor, has made one of his largest bets yet, with the enterprise-software maker turned Bitcoin investment-fund proxy purchasing $593.3 million more of the largest cryptocurrency. The Tysons Corner, Virginia-based firm disclosed the purchase in a filing on Thursday, revealing that it bought 16,130 Bitcoin in November, raising its total holdings to roughly $6.5 billion. This latest buy was the company’s biggest since it acquired 19,452 Bitcoin for just over $1 billion in February 2021.
Rapid Bitcoin Purchases by Saylor
Saylor began buying Bitcoin in 2020 and has increased his purchases this year as the cryptocurrency recovered from a year of losses due to rising interest rates and several high-profile crypto implosions and bankruptcies. A year ago, Saylor stepped down from the chief executive role, stating that he will focus on the Bitcoin aspect of the company’s now dual strategy. MicroStrategy’s shares have surged 250% this year, outperforming Bitcoin as it rallied more than 125% amid optimism that the US may soon approve an exchange-traded fund that invests directly in the cryptocurrency. This has helped to allay concerns that an ETF will diminish demand for the stock.
Plan to Offer Common Stock
In addition to the significant Bitcoin purchase, MicroStrategy also has plans to offer up to $750 million of common stock through an agreement with Cowen and Company, Canaccord Genuity, and BTIG. The company initially announced plans to raise this amount through share sales back in August, with the proceeds aimed at purposes such as Bitcoin purchases, working capital, and the repurchase of debt.
Market Strategist’s Perspective
Commenting on the potential impact of a Bitcoin ETF, Matthew J. Maley, chief market strategist at Miller Tabak + Co, stated, “If/when we get a Bitcoin ETF, it will raise the interest in the asset class. There shouldn’t be a lot of cannibalization.”
The move by MicroStrategy to increase its Bitcoin holdings comes at a time when the cryptocurrency market is gaining momentum and investor interest. This strategic expansion could position the company for further growth and diversification in the ever-evolving world of digital assets. As the company continues to navigate the complexities of the crypto market and traditional financial spheres, its decisions are closely watched by industry experts and investors alike.
With assistance from Tom Contiliano.
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I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
