2 weeks ago
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As November concludes and December begins, business intelligence firm MicroStrategy has significantly accelerated its Bitcoin (BTC) acquisitions, slightly surpassing the milestone of 400,000 BTC in its portfolio.
This purchase surge comes just over a month after the company announced ambitious plans to raise $21 billion through stock sales to fund additional Bitcoin acquisitions.
$1.5 Billion From Stock Sale Into Bitcoin
In the past week alone, MicroStrategy sold 3.7 million MSTR shares, generating approximately $1.5 billion in proceeds, which were promptly reinvested into Bitcoin. This marks the fourth consecutive week of Bitcoin purchases by the company.
According to Bloomberg data, MicroStrategy has approximately $11.3 billion remaining in stock issuance under its at-the-market share program. This initiative is part of a broader goal to reach $21 billion in funding through fixed-income securities by 2027.
The most recent filing with the US Securities and Exchange Commission (SEC), shows that the company acquired 15,400 Bitcoin from November 25 to December 1, at an average price of about $95,976 per token.
Since November 11, the company has invested over $13.5 billion in BTC in three batches, bringing its total holdings to approximately $38 billion, or 402,100 BTC as of today, at an average purchase price of $56,658 per coin.
Crypto Mining Firms Shift Strategies
MicroStrategy’s aggressive purchasing strategy has attracted attention from other companies looking to replicate its success. For instance, MARA Holdings, a cryptocurrency mining company, announced on Monday that it had acquired $618 million worth of Bitcoin over the past two months.
The company is also pursuing a $700 million convertible senior note offering, with plans to allocate some of the net proceeds towards further Bitcoin purchases. This trend is notable, particularly as crypto mining stocks have struggled this year, especially after the Halving of Bitcoin rewards in April.
This event has prompted miners like MARA to adopt a treasury strategy focused on accumulating Bitcoin rather than selling it. Despite experiencing a 44% drop earlier this year, MARA’s shares have rebounded and are currently up 8% year-to-date.
Similarly, Riot Platforms, another mining company, has announced plans to temporarily halt the sale of mined BTC in order to increase its holdings after seeing its share value drop 20% this year, following a significant 59% drop in September.
At the time of writing, the market’s leading cryptocurrency is trading at $95,180, down 1.6% in the 24-hour time frame. This has been a continuous pattern over the past 10 days, as the BTC price has been consolidating between $91,000 and $98,000, failing to retest its record high of $99,540 and the evasive $100,000 milestone.
Featured image from DALL-E, chart from TradingView.com
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