MicroStrategy Halts 12-Week Bitcoin Buying Spree, Still Holds 471,107 BTC

MicroStrategy has paused its Bitcoin purchases after acquiring around $20 billion worth of the cryptocurrency over the past few months. The business intelligence firm, led by Michael Saylor, did not sell any shares of its class A common stock last week, nor did it acquire more Bitcoin, according to an 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday.

MicroStrategy’s Bitcoin Holdings Remain at 471,107 BTC

Currently, in a recent filing MicroStrategy has revealed it still possesses 471,107 BTC which it had purchased at an average price of $7,314 thus cost-basing the assets at a value of over $44 billion at current Bitcoin prices. The company had bought all of its holdings for about $30.4 billion and has an average cost of $64,511 per Bitcoin. Bitcoin has a total supply of 21 million coins with this ownership quantity equaling more than 2.2% of the available allocation.

This position was also echoed by the company’s co-founder and the executive chairman, Michael Saylor, through X.

“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.

Although MicroStrategy has temporarily ceased more acquisitions, it remains committed to its vision for Bitcoin adoption. The firm has raised capital through equity offerings and debt issuances to fund acquisitions, with approximately $4.35 billion in shares still available for future sales under its “21/21 plan.”

Strong Demand for MicroStrategy’s Preferred Stock

Furthermore, on Friday, MicroStrategy conducted an offering of preferred stock to raise $563.4 million. The capital raised was aimed at providing more capital for subsequent Bitcoin purchases. Micromax’s shares, trading under the symbol MSTR, ended at $334.79 on Friday, down 1.6%, but it has risen more than 567% in the last one year.

MicroStrategy currently has a market capitalization of around $84.1 billion and holds Bitcoin at a premium to its net asset value (NAV). Some critics have faulted the valuation method due to the company’s use of equity and debt to expand its Bitcoin holdings.

Nonetheless, investment firm Mizuho Securities still believes in MicroStrategy’s plans and retains an “outperform” rating with a $511 price target on MSTR. Currently, the firm has estimated the future returns of Bitcoin by foreseeing that its prices are still likely to increase by 30% over the next three years regardless of recent price swings.

Bitcoin Price Plummets Amid High Liquidations

The broader crypto market has seen price declines in recent days. At press time, Bitcoin price was trading at $95,022.89, reflecting a 4.32% drop in 24 hours and a 5.79% decrease over the past week. The decline comes amid $2 billion in liquidations, marking one of the largest single-day sell-offs in Bitcoin history.

Michael Saylor has remained bullish on Bitcoin standing on the firm position that it is an investment asset. On February 2, he posted ‘Never sell your Bitcoin’ on X. He has consistently referred to Bitcoin as a form of property rather than a speculative asset.

Meanwhile, some market analysts, including Peter Schiff, continue to challenge Bitcoin’s role as a safe-haven asset. Schiff argued that investors are turning to gold, U.S. Treasuries, and the Japanese yen instead of Bitcoin during market uncertainty. “Bitcoin is not digital gold; it’s digital risk,” Schiff stated, emphasizing his view that Bitcoin remains a speculative asset rather than a store of value.

Former Binance CEO Changpeng Zhao also weighed in on Bitcoin’s role in the market. He shared his perspective on X, stating, “You need Bitcoin more than Bitcoin needs you,” suggesting that Bitcoin remains resilient despite market fluctuations.