As November comes to a close and December begins, business intelligence company MicroStrategy has significantly accelerated its Bitcoin (BTC) purchases, slightly surpassing the milestone of 400,000 BTC in its portfolio.
This buying spree comes just over a month after the company announced an ambitious plan to raise $21 billion through stock sales to fund additional Bitcoin purchases.
$1.5 billion from stock sales into Bitcoin
Just in the past week, MicroStrategy sold 3.7 million MSTR shares, generating about $1.5 billion in proceeds, which were immediately reinvested into Bitcoin. This marks the fourth consecutive week the company has bought Bitcoin.
According to Bloomberg data, MicroStrategy has about $11.3 billion remaining from the stock issuance under its market share program. This initiative is part of a larger goal to achieve $21 billion in funding through fixed-income securities by 2027.
The most recent filing submitted to the U.S. Securities and Exchange Commission (SEC) shows that the company purchased 15,400 Bitcoin from November 25 to December 1, at an average price of about $95,976 per token.
Since November 11, the company has invested over $13.5 billion in BTC in three tranches, bringing its total holdings to approximately $38 billion, equivalent to 402,100 BTC as of now, with an average purchase price of $56,658 per coin.
Cryptocurrency mining companies are changing strategies
MicroStrategy's aggressive buying strategy has attracted attention from other companies wanting to replicate their success. For example, MARA Holdings, a cryptocurrency mining company, announced on Monday that it had purchased $618 million in Bitcoin over the past two months.
The company is also pursuing a high-end convertible bond offering worth $700 million, with plans to allocate part of the net proceeds to future Bitcoin purchases. This trend is notable, especially as cryptocurrency mining stocks have struggled this year, particularly after the Bitcoin reward halved in April.
This event has prompted miners like MARA to adopt a treasury strategy focused on accumulating Bitcoin rather than selling it. Although it dropped 44% earlier this year, MARA's stock has rebounded and is now up 8% for the year.
Similarly, Riot Platforms, another mining company, announced plans to pause the sale of mined BTC to increase their holdings after witnessing their stock value drop 20% this year, following a significant 59% decrease in September.
At the time of writing, the leading cryptocurrency in the market is trading at $95,180, down 1.6% in the 24-hour timeframe. This has been a continuous pattern over the past 10 days, as BTC prices have consolidated between $91,000 and $98,000, unable to retest the record high of $99,540 and the elusive $100,000 mark.
