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MicroStrategy Reveals It Stopped Buying More Bitcoin, Switched to HODL Mode
- MicroStrategy has accumulated 2.243% of all Bitcoin, representing the largest public company Bitcoin holdings after a consistent buying strategy initiated in October 2024.
- The company temporarily halted its Bitcoin purchase streak but announced plans to raise additional funds through share issuance specifically to continue acquiring more Bitcoin.
- Share details include a US$100 liquidation value, potential quarterly dividends starting March 31, 2025, and flexible conversion and buyback mechanisms for investors.
Michael Saylor is known for his conviction when it comes to buying Bitcoin, but even for him, there seems to be a line in the sand. His MicroStrategy has bought BTC for twelve weeks in a row and has made it clear it won’t be doing that for the thirteenth time, maybe out of superstition?
Related: Stablecoins Surge Past $200 Billion Cap, Signalling Potential Crypto Market Growth
Although more likely tied to the upcoming earning season, Saylor made an announcement on X, stating that they didn’t sell any shares based on their “at-the-market equity offering program” and that no Bitcoin purchases were made last week – meaning MSTR will now HODL its 471,107 Bitcoin.
MicroStrategy bought its first Bitcoin in 2020 after Saylor learned all about the OG crypto coin. They have since added BTC consistently and started the twelve-week buying spree in October of 2024, which led to the accumulation of 2.243% of all Bitcoin – the largest amount owned by any public company.
MicroStrategy Not Done Loading Up Bitcoin Yet
It doesn’t seem that Saylor has had a change of heart, though, and the purchase stop is likely only temporary.
After they made their last large Bitcoin purchase, MSTR announced plans to raise more money through share issuance, to…you guessed it, buy more Bitcoin. In a statement from last week, the company said it intends to use the “net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital”.
Shares will be valued at US$100 (AU$160) at liquidation, with potential quarterly dividends starting March 31, 2025, if approved, payable in cash or stock.
Investors can convert these shares into regular stock under certain conditions and can compel MicroStrategy to buy back shares during major company changes. The company may also buy back all shares if their value falls below 25% of the initial issue or for tax reasons.
It Seems Saylor Missed Buying the Dip
It’s interesting the company chose this week (although this was probably long planned) to opt out of buying, as Monday would have been a fantastic dip buying opportunity.
But then again, Saylor doesn’t seem to care about the price, at least in the short-term. He has his eyes on a much larger price per coin, so a $10k discount is hardly a game changer for him.
Related: Senator Lummis Puts Pressure on US Marshals’ To Defend its Record on Seized Bitcoin Management
Bitcoin and Co recovered on Tuesday following the massive dip on Trump’s tariff move. At the time of writing BTC gained 8% to make it back over the US$100k mark.
Others bounced even more, with Ethereum (ETH) up 14% and XRP flying with a 30% increase over the past day. Solana (SOL) is up 16%, while Dogecoin (DOGE) rallied 24% and Cardano (ADA) gained 31%, stopping short of fully recovering from the 40% dip from yesterday.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
