MicroStrategy Hits Pause on 12-Week BTC Buying Streak, Flexes $44B in 471K Bitcoin

MicroStrategy, the business intelligence company led by Bitcoin enthusiast Michael Saylor, has paused its aggressive Bitcoin buying spree after 12 weeks.

According to an 8-K filing with the U.S. Securities and Exchange Commission (SEC), the company didn’t buy any Bitcoin or sell any of its class A common stock last week. Despite the pause, MicroStrategy is still one of the largest corporate holders of Bitcoin with 471,107 BTC in its treasury valued at over $44 billion at current prices.

The company bought its Bitcoin at an average price of $30.4 billion with an average cost of $64,511 per coin. That’s more than 2.2% of the total 21 million supply of Bitcoin. Saylor who has been a vocal advocate for Bitcoin reiterated the company’s long term strategy saying MicroStrategy views Bitcoin as a store of value not a speculative asset.

Strong Demand for MicroStrategy’s Preferred Stock

Despite the pause in Bitcoin buying, MicroStrategy is still raising capital to fund future purchases. On Friday, the company did a preferred stock offering and raised $563.4 million. The funds are earmarked for additional Bitcoin purchases aligning with the company’s “21/21 plan” which allows for the sale of up to $563.4 million. The funds are earmarked for additional Bitcoin purchases*,* aligning with the company’s* “21/21 plan”* which allows for the sale of up to $4.35 billion in shares to support its crypto strategy.

MicroStrategy’s stock (MSTR) has seen huge growth, up 567% over the past year. But it closed at $334.79 on Friday, down 1.63% from the previous day*. It’s Bitcoin holdings are trading at a premium to its net asset value (NAV). Some critics question the valuation method but Mizuho Securities is optimistic and has an “outperform” rating and a $511 price target for MSTR.

Bitcoin’s Market Volatility and MicroStrategy’s Resilience

The broader crypto market has been volatile lately, with Bitcoin down 4.32% in 24 hours and 5.79% over the past week. At press time Bitcoin was trading at 95,022.89*amid95,022.89,_amid_2 billion in liquidations – one of the largest single day sell off in Bitcoin history.

Despite the market turmoil Saylor is still bullish on Bitcoin. On February 2 he tweeted “Never sell your Bitcoin” reiterating his view of Bitcoin as a long term investment asset. Meanwhile economists like Peter Schiff argue Bitcoin is not a safe-haven asset, pointing to gold, US Treasuries and the Japanese yen as more reliable options during market uncertainty. Former Binance CEO Changpeng Zhao countered this view saying on X “You need Bitcoin more than Bitcoin needs you” highlighting Bitcoin’s resilience.

Key Takeaways:

• MicroStrategy has 471,107 BTC valued at over $44 billion.

• The company raised $563.4 million through a preferred stock offering to fund future Bitcoin purchases.

• Bitcoin dropped amid $2 billion in liquidations but MicroStrategy is sticking to its long term strategy.

MicroStrategy’s pause in Bitcoin buying is a strategic move during the volatility but its big holdings and continued fundraising is a sign of its confidence in Bitcoin. As the crypto market evolves MicroStrategy’s moves will be a key indicator of institutional sentiment towards digital assets.