MicroStrategy has boosted its Bitcoin reserves by purchasing an additional 10,107 BTC, which cost around $1.1 billion.
The announcement, made by co-founder Michael Saylor on January 27, reflects the company’s unwavering focus on accumulating Bitcoin as part of its strategic approach.
This latest acquisition marks 12 consecutive weeks of Bitcoin purchases and the firm’s total holdings to 471,107 BTC. According to the filing:
“From January 1, 2025 to January 26, 2025, the Company’s BTC Yield was 2.90%.”
Meanwhile, these holdings account for over 2.2% of Bitcoin’s fixed supply of 21 million coins and are currently valued at more than $46 billion. The company has accumulated its Bitcoin at an average price of $64,511 per coin, inclusive of all associated costs.
MicroStrategy’s Bitcoin-centric strategy has redefined its identity, transforming it from a traditional software company into a leader in corporate Bitcoin adoption. Since entering the Bitcoin market in 2020, the firm has shown unmatched commitment, with its recent pace of weekly purchases underscoring this dedication.
This move is unsurprising, considering Saylor views Bitcoin as a superior hedge against inflation and a reliable store of value for the long term. He frequently calls on other companies to embrace Bitcoin, emphasizing its role in preserving wealth in uncertain economic climates
MicroStrategy’s STRK Stock Offering
On the same day. MicroStrategy has also announced plans to issue 2.5 million units of perpetual preferred STRK stock to raise additional funds for its Bitcoin push.
This stock, designed with a $100 liquidation preference per share, will pay fixed dividends quarterly starting March 31. Investors will also have the option to convert these shares into common stock.
The funds from this offering will be directed toward general corporate needs, including further Bitcoin acquisitions.
According to industry observers, this move could significantly enhance MicroStrategy’s ability to scale its Bitcoin holdings. Bitcoin analyst Fred Krueger noted that a large-scale issuance of this stock could allow the firm to make substantial purchases without risking financial stability.
Krueger also suggested that increased liquidity in the preferred stock market could boost demand, enabling MicroStrategy to raise and allocate capital more efficiently. He emphasized that such a move could solidify the company’s position as a pioneer in corporate Bitcoin adoption while strengthening its balance sheet.
He explained:
“To analyze, lets assume they issue a very large amount of STRK in 2025: let’s say 50 Billion. The share dilution under MSTR 1,000 is effectively zero. The dividend payment is 4 Billion a year, payable in MSTR, so effectively 4%. They double the Bitcoin treasury. mNav goes to 1. With no share price collapse. It’s amazing for BTC, because it gives Saylor a way to easily buy 50 Billion in BTC in the next 12 months, assuming there is appetite.”
