MicroStrategy stock jumps with latest Bitcoin purchases and capital raising plans
Key takeaways
- MicroStrategy shares rose as the company purchased an additional $101 million worth of Bitcoin last week.
- The company now has approximately 447,470 bitcoins on its books, worth approximately $45 billion at current prices.
- MicroStrategy announced a plan to raise $2 billion in capital over the next three years, furthering its strategy to raise $42 billion through equity and debt to buy Bitcoin.
Microstrategy stocks (MSTR(It rose on Monday as one of the largest holders of Bitcoin)Bitcoin against the dollar) to its stock, with plans to raise more capital for future purchases.
The company purchased 1,070 bitcoins for $101 million, at an average price of $94,004 per bitcoin, on December 30 and 31, according to a recent regulatory filing.
MicroStrategy now owns approximately 447,470 bitcoins, worth about $45 billion, as bitcoin prices surged back above $101,000 on Monday.
Raise capital to fund future Bitcoin purchases
The purchase submission comes after MicroStrategy revealed plans to raise up to $2 billion over the next three years on Friday.
The capital raise adds to MicroStrategy’s previously announced “21/21” strategy. Plan 21/21 is the company’s strategy to raise $42 billion in capital by selling new stocks and fixed income securities to buy more Bitcoin.
Microstrategy too Join the Nasdaq 100 Index in late December, though Concerns about influence The sustainability of the company’s Bitcoin buying strategy led to a tumble in its stock price last month.
MicroStrategy shares rose 6% on Monday, and despite recent volatility, they are up more than 470% over the past year.
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