MicroStrategy Invests $1.1 Billion in Bitcoin, Eyes Share Expansion
MicroStrategy Inc. has purchased $1.1 billion worth of Bitcoin, bringing its total investment in the cryptocurrency to $47.9 billion. This marks the 11th consecutive week of Bitcoin acquisitions for the software company, which now owns over 2% of the total Bitcoin supply.
MicroStrategy's Bitcoin purchases are funded through stock sales and convertible debt offerings, with plans to raise $42 billion in capital by 2027. Hedge funds are contributing to the demand for MicroStrategy's convertible bonds, betting on the volatility of the underlying stock.
The company's Bitcoin investments have accelerated since the election of President Trump, who is seen as more favorable towards cryptocurrency regulation. MicroStrategy's founder and chairman, Michael Saylor, met with Trump's incoming cabinet at a Washington event.
Shareholders are set to vote on Tuesday on a proposal to increase the number of authorized Class A shares from 330 million to 10.3 billion, allowing MicroStrategy to continue funding Bitcoin purchases. Saylor holds a controlling interest in the vote.
MicroStrategy shares have risen 37% year-to-date, closing at $396.50 on Friday. The company's share sales, coupled with the Bitcoin investments, have created a so-called "Bitcoin treasury company."