In This Article:
(Bloomberg) -- MicroStrategy Inc. bought $1.1 billion of Bitcoin, as the company gears up for a shareholder vote on a 30 times increase its authorized Class A shares.
Most Read from Bloomberg
-
Texas HOA Charged With Discrimination for Banning Section 8 Renters
-
How Sanctuary Cities Are Preparing for Another Showdown With Trump
-
Deadly Landslide of Garbage Displays Uganda's Missed Opportunity
-
LA Schools Wrecked by Fires Plead on GoFundMe for Help to Reopen
This marks the 11th consecutive week of token purchases for the enterprise software company turned leveraged Bitcoin proxy. Co-founder and Chairman Michael Saylor has been ramping up purchases of the original cryptocurrency, with the Tysons Corner, Virgina-based firm now owning over 2% of all the Bitcoin that will ever exist.
MicroStrategy purchased 11,000 Bitcoin tokens at an average price of approximately $101,191 from Jan. 13 through Jan. 20, according to a filing with the US Securities and Exchange Commission. It owns about $47.9 billion of Bitcoin.
The company has been funding Bitcoin purchases through at-the-market stock sales and convertible debt offerings. MicroStrategy plans to raise $42 billion of capital with these offerings through 2027.
Hedge funds have been driving some of the demand as they seek out MicroStrategy for convertible arbitrage strategies by buying the bonds and selling the shares short, essentially betting on the underlying stock’s volatility.
MicroStrategy has accelerated its capital goals and Bitcoin purchases since the election of crypto skeptic turned industry supporter President Donald Trump, whose administration is expected to have a more friendly regulatory environment for crypto. Ahead of Trump’s inauguration, Saylor attended the Crypto Ball in Washington, where he met with the president’s incoming cabinet and some of his family members, according to posts on X.
MicroStrategy shareholders will vote on Tuesday on whether to increase the number of authorized shares of its Class A common stock from 330 million to 10.3 billion and increase the number of authorized shares of preferred stock from 5 million to 1 billion. The amendments are expected to pass, with Saylor holding around 47% of voting power.
The so-called Bitcoin treasury company currently has about $5.42 billion of equity offerings left under its capital plan. Increasing share sales would allow MicroStrategy to continue to fund additional Bitcoin purchases.
MicroStrategy shares closed at $396.50 on Friday, up 37% so far this year.