Key Points
- MicroStrategy halts its 12-week Bitcoin buying streak, maintaining its $44 billion Bitcoin holdings.
- The company did not sell any class A common shares from its at-the-market program.
MicroStrategy, a software design firm, has put a pause to its continuous 12-week buying of Bitcoin. For the time being, it plans to hold onto its current Bitcoin stash, valued at $44 billion.
According to Form 8-K disclosure documents filed with the U.S. Securities and Exchange Commission, the company did not purchase any Bitcoin (BTC) for the first time in three months. This marks a significant shift in the company’s recent behavior.
MicroStrategy’s Bitcoin Strategy
After 12 weeks of continuous Bitcoin purchases, MicroStrategy did not sell any class A common shares from its at-the-market program. From January 27 to February 2, there were no share sales, leaving the company with an outstanding $4.35 billion worth of equity offerings. These could potentially be used to finance future Bitcoin acquisitions.
MicroStrategy’s “21/21” strategy, which aims to invest $42 billion in Bitcoin, is planned to be funded through its ATM offering. This strategic plan was created by the company’s executive chairman, Michael Saylor.
New Capital Raise Channel
In addition to this, Saylor’s firm introduced a preferred stock offering named STRK. This new avenue for raising capital, designed to facilitate more Bitcoin purchases, attracted $563.4 million in investor cash shortly after its launch.
As of February 3, MicroStrategy held 471,107 BTC, which was valued at approximately $44 billion. This was during a time when Bitcoin’s value dipped to $96,000 due to a market-wide correction caused by mass liquidations.
The company, which originated during the dotcom era as a business intelligence firm, spent around $20 billion on Bitcoin during its 12-week buying spree. On at least two occasions, it acquired as much as $1.1 billion worth of tokens. MicroStrategy’s aggressive Bitcoin accumulation strategy has influenced other firms such as Marathon Digital and Riot Platform. These companies have also been building their Bitcoin treasuries while operating mining businesses.