MicroStrategy Bitcoin Holdings Surpass $14 Billion
13 Sep, 2024 ● Crypto News
MicroStrategy, a publicly traded business intelligence and software firm, has announced the acquisition of approximately 18,300 Bitcoin between August 6 and September 12.
According to the company's Form 8-K filed with the United States Securities and Exchange Commission, this purchase, valued at $1.11 billion, was made at an average price of $60,408 per Bitcoin, including expenses and fees.
Led by CEO Michael Saylor, the firm has consistently expanded its Bitcoin holdings over the past four years, following its initial purchase on August 11, 2020.
This latest acquisition increased MicroStrategy's total Bitcoin holdings to around 244,800 BTC, with an estimated current value of approximately $14.14 billion.
Since August 2020, the company's average purchase price for Bitcoin has been $38,585 per BTC, with a total investment of roughly $9.45 billion.
MicroStrategy’s aggressive Bitcoin accumulation strategy has been met with both criticism and praise from financial analysts, but the company has continued to increase its BTC holdings.
The funds for this most recent purchase of 18,300 BTC were raised through the sale of company shares, as facilitated by a sales agreement with several financial institutions on August 1.
Per the SEC filing, MicroStrategy had raised around $1.11 billion by September 12 from the sale of “an aggregate of 8,048,449 Shares under the Sales Agreement.”
The proceeds from the sale of these over 8 million shares were used directly to expand the company's Bitcoin portfolio.
On August 10, MicroStrategy held 226,500 BTC, valued at $13.77 billion, acquired at an average price of $37,000 per BTC.
At that time, with Bitcoin priced at approximately $60,500, MicroStrategy had $5.39 billion in unrealized profits.
Since its initial investment in August 2020, the company has significantly outperformed the S&P 500 index.
MicroStrategy’s stock value increased by around 1,000% since August 2020, translating to more than 16.25 times the returns of the SPX over the same period.
Sources:
https://cointelegraph.com/news/microstrategy-acquires-18300-btc-raising-holdings-to-244800
