MicroStrategy Inc (NASDAQ:MSTR) announced that it did not buy any Bitcoin over the past week, halting a 12-week streak of weekly buying that began in late October.
These purchases coincided with a record rise in the value of Bitcoin, driven in part by former US President Donald Trump’s support for digital assets and his new administration’s move toward pro-cryptocurrency policies in the first weeks of his second term.
During that period, MicroStrategy spent more than $20 billion buying Bitcoin, bringing its total holdings to about $44.7 billion, equivalent to more than 2% of the cryptocurrency’s total future supply.
The Tysons Corner, Virginia-based company, which under Michael Saylor has transformed into a leveraged entity to invest in bitcoin, is seeking to raise $42 billion in capital by 2027. Last week, MicroStrategy sold $563 million worth of stock, relying on market-based stock sales and convertible debt deals to fund its operations.
Hedge funds have played a major role in driving demand for MicroStrategy shares, as the company exploits convertible arbitrage strategies by buying bonds and shorting shares, allowing investors to bet on the volatility of the company's stock.
Since the end of 2022, MicroStrategy shares have risen more than 2,200%. However, the stock fell 5% on Monday, to $318.19.