MicroStrategy (MSTR, Financial) has made headlines with its latest acquisition of approximately $4.6 billion worth of Bitcoin, as part of its ongoing strategy to increase cryptocurrency holdings through capital market activities. Recent filings with the U.S. Securities and Exchange Commission revealed that the company acquired about 51,780 Bitcoins between November 11 and November 17. This follows previous purchases of over 27,000 Bitcoins from October 31 to November 10 and additional acquisitions in September.
The company, known as the largest institutional holder of Bitcoin, has a current portfolio valued at approximately $30 billion. MicroStrategy has been proactive in raising capital to support these purchases, recently announcing the issuance of $1.75 billion in convertible senior notes due in 2029 to finance further acquisitions.
Michael Saylor, co-founder and chairman of MicroStrategy, shifted the company’s focus to Bitcoin in 2020 as a hedge against inflation. Initially using cash, the company has moved to leveraging capital raised through stock issuance and convertible bonds. On October 30, MicroStrategy took steps to raise an additional $4.2 billion through new stock and fixed income sales.
By November 17, MicroStrategy had sold 13.6 million shares as part of its aggressive $21 billion at-the-market (ATM) stock offering program. This move indicates strong market demand and places the company’s financing efforts among the largest ATM transactions in recent times.
