MicroStrategy Inc (NASDAQ:MSTR) has bought $1.1 billion worth of bitcoin (BTC), after announcing plans to early redeem convertible notes and increase the number of authorized common shares.
The Tysons Corner, Virginia-based company, which began using bitcoin as its primary investment vehicle, has been buying bitcoin for 12 straight weeks and now owns more than 2% of all the digital currency ever to be offered. Co-founder and chairman Michael Saylor has increased his bitcoin purchases since the election of former U.S. President Donald Trump, whom Saylor called the “first Bitcoin president” in a post on the X (formerly Twitter) platform.
According to a filing with the U.S. Securities and Exchange Commission on Monday, MicroStrategy purchased 10,107 bitcoin tokens between Jan. 21 and Jan. 26 at an average price of about $105,596 per token. The company currently holds about $47 billion worth of bitcoin.
Financing and capital raising plans
The company is using market share sales and convertible note offerings to fund its bitcoin purchases, with the goal of raising $42 billion in capital by 2027.
Hedge funds have helped drive demand for MicroStrategy's convertible bonds, using arbitrage strategies such as buying bonds and shorting stocks, which reflect bets on the volatility of the company's underlying stock.
