MicroStrategy Buys 11,000 Bitcoin for More than USD 1 Billion

Enterprise software maker MicroStrategy has bought a large number of Bitcoins in the last few weeks. This company has purchased about 11,000 bitcoins for about $ 1.1 billion in the week ending January 19. This marks MicroStrategy’s 11th consecutive week of large purchases of Bitcoin.

The company’s executive chairman, Michael Saylor, has given this information in a post on social media platform X. MyskoStrategy holds approximately 4,61,000 Bitcoins. In order to raise funds for the purchase of Bitcoin, the company is planning to increase its authorized Class A common stock from approximately 330 million shares to more than 10 billion shares. The plan will be put up for voting at MicroStrategy’s shareholders’ meeting on January 21.

However, the company’s founder, Michael Saylor, has about 47 percent stake in the voting shares. With this increase in the shares of this American company, the total number of its outstanding shares will be close to that of Alphabet, the American company that operates e-commerce and technology-related Amazon and Internet search engine Google. In October last year, MicroStrategy had said that it would raise about $ 42 billion by selling debt and issuing shares to buy Bitcoin in three years. MicroStrategy’s share price has increased by more than 2,500 percent since it started buying Bitcoin.

Before Donald Trump took oath as US President on Monday, Bitcoin had made a new high level of $ 1,09,241. Trump had also hinted at creating a reserve of Bitcoin. However, due to the lack of mention of crypto in his first speech after becoming the President, Bitcoin has fallen significantly. At the time of publishing this report, the price of Bitcoin on the international crypto exchange Binance was around $ 1,05,740. This most valuable cryptocurrency is being used by Russian companies in doing business abroad. The Russian government had changed the law to allow the use of cryptocurrencies to deal with the restrictions of Western countries. Recently, Russian President Vladimir Putin had said that the US government is reducing the role of the dollar by using it for political purposes. Because of this many countries are having to turn to other assets.