FX168 Financial News (North America) reported that microstrategy Inc recently announced raising funds through stock sales to expand its bitcoin holdings. The company plans to raise $2.1 billion, and has currently completed nearly half of the target.

In the past week, MicroStrategy sold 3.7 million shares and used the proceeds to purchase $1.5 billion worth of bitcoin. This marks the fourth consecutive week the company has announced an increase in its bitcoin holdings.

According to Bloomberg data, the company still has approximately $1.13 billion in stock issuance under its "at market share" plan to achieve its three-year target. In addition, the company plans to further raise $2.1 billion by 2027 through fixed-income securities and continue to increase these issuances.

Benchmark analyst Mark Palmer pointed out that since Trump was elected, MicroStrategy has been inclined to increase bitcoin purchases, believing that the new government may create a more crypto-friendly regulatory environment. Palmer noted that the key question now is whether this means the company's ultimate fundraising target will exceed the established $4.2 billion, or if only a portion of the plan has been completed ahead of schedule.

According to documents submitted to the US Securities and Exchange Commission, from November 25 to December 1, MicroStrategy purchased a total of 15,400 bitcoins at an average price of about $95,976. Since November 11, the company has spent over $13.5 billion on bitcoin purchases, with the current total value of bitcoin holdings approximately $38 billion.

The company's co-founder and director Michael Saylor has transformed MicroStrategy into a so-called 'bitcoin treasury' company, a strategy that has attracted significant attention from Wall Street. Over the year, MicroStrategy's stock price has soared by over 570%, outperforming almost all major stocks. The company funds its bitcoin purchases through issuing convertible bonds and selling shares at market prices.

(Source: Google)

In addition to microstrategy, other companies are also emulating its strategy. Cryptocurrency mining company MARA Holdings Inc. has recently acquired $0.618 billion worth of bitcoin in the past two months, and announced the issuance of $0.7 billion worth of convertible preferred notes, with some of the proceeds to be used for further bitcoin purchases.

After the bitcoin mining rewards halved in April this year, mining company stocks performed weakly. This has led mining companies including MARA to cope by holding bitcoin and increasing investments. MARA's stock price dropped by 44% at the beginning of the year, but as of now, it has accumulated an 8% increase this year.

Macquarie Capital analyst Paul Golding stated that mining companies are strengthening their positions by directly purchasing bitcoin, a strategy that appears particularly aggressive in the current bull market cycle. He pointed out that companies holding significant bitcoin assets may achieve excess returns on their balance sheets.

Another mining company, Riot Platforms Inc., has chosen to halt the sale of mined bitcoins and plans to increase its bitcoin holdings. The company's stock price has fallen by 20% since the beginning of this year, but with the volatility of the bitcoin market, its long-term strategy continues to attract market attention.