MicroStrategy Inc . (NASDAQ:MSTR), currently valued at $97.73 billion in market capitalization, disclosed on Tuesday that it has sold over three million shares, raising approximately $1.1 billion net proceeds in the past week. The software company stated that these funds were used to purchase approximately 11,000 bitcoins at an average price of $101,191 per bitcoin, inclusive of fees and expenses. The stock has shown remarkable momentum, delivering a 724% return over the past year according to InvestingPro data.
The transactions, carried out between January 13 and January 20, are part of an ongoing strategy by MicroStrategy to invest in digital assets. Following these recent purchases, the company's total bitcoin holdings have reached approximately 461,000 bitcoins, acquired at an aggregate price of nearly $29.3 billion.
The company's bitcoin acquisition was funded through an at-the-market equity offering program, which allows MicroStrategy to issue and sell shares of its class A common stock. As of January 20, the company still has about $5.42 billion worth of shares available for sale under the existing agreement. InvestingPro analysis reveals that while the company operates with a moderate debt level, it currently trades at a premium to its Fair Value, with a notably high Price-to-Book ratio of 25.9x.
In addition to the sales and purchase updates, MicroStrategy also reported a key performance indicator (KPI) known as BTC Yield, which stands at 1.69% for the period from January 1 to January 20, 2025. This KPI measures the percentage change in the ratio of the company's bitcoin holdings to its Assumed Diluted Shares Outstanding, which includes potential shares from convertible notes and stock-based compensation.
MicroStrategy's strategic focus on bitcoin investment has been a significant aspect of its corporate identity, with the company leveraging its equity to increase its holdings in the cryptocurrency. The company's aggressive investment in bitcoin has been closely watched by investors, as it serves as an unconventional method of value storage and capital allocation.
In other recent news, MicroStrategy Inc. has reported a series of significant developments. The company recently disclosed the purchase of $243 million in Bitcoin, marking its 10th consecutive weekly acquisition. Additionally, MicroStrategy has increased its Bitcoin holdings to around 450,000, following an acquisition of 2,530 bitcoins, funded by the proceeds from a recent sale of its class A common stock.
In the realm of recognition, MicroStrategy was awarded the Partner of the Year and the VIP Challenge for AI Innovation & Application at the National Retail (NYSE:NNN) Federation 2025 conference. The company's AI-powered solutions have been lauded for their impact on the retail industry.
MicroStrategy also announced a partnership with STACKIT to launch the MicroStrategy Sovereign European Cloud, aiming to serve highly regulated businesses in Europe. This strategic move is designed to enhance data-driven decision-making capabilities for various organizations.
Benchmark analysts have maintained a Buy rating on MicroStrategy, based on a sum-of-the-parts analysis, which includes the projected value of MicroStrategy's Bitcoin holdings by the end of 2026. The company has also revealed plans to raise up to $2 billion through perpetual preferred stock offerings, as part of a larger initiative to raise $21 billion of equity and fixed income instruments over the next three years.
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