MicroStrategy puts an end, temporarily, to its massive Bitcoin accumulation after twelve consecutive weeks of buying. According to a regulatory filing with the SEC, the company, known for its aggressive investment strategy in cryptocurrency, made no purchases between January 27 and February 2. This interruption marks the end of a trend that saw the company acquire around $20 billion worth of Bitcoin in recent months.
An impressive portfolio of 471,107 BTC
MicroStrategy now holds a total of 471,107 BTC, which is valued at over $44 billion at the current price. According to its co-founder and executive chairman, Michael Saylor, these purchases were made at an average price of $64,511 per Bitcoin, for a total cost of about $30.4 billion, including fees. With this quantity, the company controls over 2.2% of the total Bitcoin supply, which is limited to 21 million units, further solidifying its position as a major institutional player in the cryptocurrency market.
A strategic pause in its acquisition program?
While the company has halted its Bitcoin purchases last week, it continues to raise funds to finance future acquisitions. Its “21/21” program aims to raise $42 billion in equity and bonds to continue this strategy. As of the end of January, there was still $4.35 billion available for future Bitcoin investments.
At the same time, MicroStrategy also announced that no stock sales were conducted last week, raising initial concerns about investors’ appetite for MSTR shares.
A valuation that sparks debate
MicroStrategy’s meteoric rise in the financial markets has not gone unnoticed. Its stock has risen 567% in one year, reaching $334.79 on Friday, despite a 1.6% decline at closing. In pre-market trading on Monday, the stock showed a 7.3% decrease, indicating continued high volatility.
Some analysts warn of MicroStrategy’s excessive premium compared to the value of its net assets in Bitcoin. The company continues to finance itself through stock issuance and debt, a strategy that raises questions about its long-term viability.
