MicroStrategy’s Bitcoin Drama: The Rollercoaster Ride of 471,107 BTC 🎢💰

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Well, folks, it seems MicroStrategy has decided to take a little breather from its Bitcoin buying binge. After splurging around $20 billion on the digital currency like it was the last slice of pizza at a party, the business intelligence firm, helmed by the ever-enthusiastic Michael Saylor, has hit the pause button. According to an 8-K filing with the U.S. Securities and Exchange Commission (SEC) (because who doesn’t love a good regulatory document?), they didn’t sell any shares of their class A common stock last week, nor did they add to their already impressive Bitcoin stash. Talk about a dramatic cliffhanger! 🎭

MicroStrategy’s Bitcoin Holdings Remain at 471,107 BTC

As it stands, MicroStrategy is still sitting on a whopping 471,107 BTC, which they picked up at an average price of $7,314. That’s right, folks, they’ve cost-basis-ed their assets at a value of over $44 billion at current Bitcoin prices. They originally bought all of this digital gold for about $30.4 billion, which means they’re now playing a high-stakes game of Monopoly with an average cost of $64,511 per Bitcoin. With a total supply of 21 million coins, they’re hoarding more than 2.2% of the available allocation. I mean, who needs a diversified portfolio when you can just go all-in on Bitcoin, right? 🤑

Michael Saylor, the co-founder and executive chairman, took to X (formerly known as Twitter, because rebranding is all the rage) to echo this sentiment.

“Last week, MicroStrategy did not sell any of its class A common stock under the at-the-market equity offering program and did not buy any Bitcoin,” Saylor wrote on X. Well, that’s a relief! I was worried they might accidentally buy a few Dogecoins instead. 🐕

Even though MicroStrategy has decided to take a little break from the Bitcoin buffet, they’re still committed to their grand vision of Bitcoin adoption. They’ve been raising capital through equity offerings and debt issuances like it’s a game show, with about $4.35 billion in shares still available for future sales under their “21/21 plan.” Sounds like a plan, right? Or is it just a fancy way of saying, “We’re still trying to figure this out”? 🤔

Strong Demand for MicroStrategy’s Preferred Stock

On Friday, MicroStrategy decided to throw a little party and conducted an offering of preferred stock to raise $563.4 million. The goal? To gather more cash for those future Bitcoin purchases. Their shares, trading under the symbol MSTR, ended at $334.79 on Friday, down 1.6%. But hey, it’s still up more than 567% in the last year! Talk about a rollercoaster ride! 🎢

With a market capitalization of around $84.1 billion, MicroStrategy is holding Bitcoin at a premium to its net asset value (NAV). Some critics have raised their eyebrows at the valuation method, questioning the company’s use of equity and debt to expand its Bitcoin holdings. But who needs critics when you have a vision, right? 🙄

Investment firm Mizuho Securities is still on the MicroStrategy bandwagon, maintaining an “outperform” rating with a $511 price target on MSTR. They’re predicting Bitcoin prices will rise by 30% over the next three years, despite the recent price swings. Sounds like a solid plan, or just wishful thinking? 🤷‍♂️

Bitcoin Price Plummets Amid High Liquidations

Meanwhile, the broader crypto market has been experiencing a bit of a meltdown. At press time, Bitcoin was trading at $95,022.89, reflecting a 4.32% drop in 24 hours and a 5.79% decrease over the past week. This decline comes amid $2 billion in liquidations, marking one of the largest single-day sell-offs in Bitcoin history. Yikes! 😱

But fear not! Michael Saylor remains bullish on Bitcoin, standing firm in his belief that it’s an investment asset. On February 2, he posted ‘Never sell your Bitcoin’ on X. Because who needs cash when you can have digital currency, right? 💸

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2025-02-04 05:21