MicroStrategy has temporarily halted its aggressive Bitcoin acquisition strategy after twelve consecutive weeks of purchases. According to the company’s latest 8-K filing with the Securities and Exchange Commission, there were no Bitcoin purchases or stock sales under its at-the-market (ATM) equity offering program between January 27 and February 2.
Currently, MicroStrategy holds 471,107 BTC, valued at over $44 billion. As per co-founder and executive chairman Michael Saylor, the company’s average purchase price per Bitcoin stands at $64,511, with total investments, including fees and expenses, amounting to approximately $30.4 billion. This represents more than 2.2% of Bitcoin’s total fixed supply of 21 million.
As of January 26, MicroStrategy had around $4.35 billion worth of stock available for sale under its “21/21 plan,” which aims to raise up to $42 billion through equity and fixed-income securities for additional Bitcoin purchases. On Friday, the company successfully secured $563.4 million through a preferred stock issuance to fund future acquisitions.
Despite recent market volatility driven by Trump’s proposed tariffs, Mizuho Securities remains bullish on Bitcoin, forecasting a 30% price increase over the next three years. Consequently, Mizuho has assigned MicroStrategy an “Outperform” rating with a $511 price target, citing the company’s rapid progress toward exceeding its capital-raising goals.
This announcement marks the end of an intense accumulation period, during which MicroStrategy acquired nearly $20 billion worth of Bitcoin in recent months.
While the company’s aggressive Bitcoin strategy has fueled significant growth, concerns persist regarding its valuation premium relative to net asset value (NAV) and the sustainability of its equity and debt-financed Bitcoin acquisitions. As a result, MicroStrategy’s stock closed 1.6% lower at $334.79 on Friday and declined a further 7.3% in pre-market trading on Monday. Despite this pullback, TradingView data shows that the stock has surged over 567% in the past year.
Source: investing.com
Comments
Post a Comment