Key Points
- MicroStrategy has acquired approximately 18,300 Bitcoin between August 6 and September 12, 2024, worth $1.11 billion at an average price of $60,408 per BTC.
- The company’s total Bitcoin holdings have now reached 244,800 BTC, valued at around $14.14 billion, with an average purchase price of $38,585 per BTC since August 2020.
Massive Bitcoin Acquisition
MicroStrategy, the publicly traded business intelligence and software company led by CEO Michael Saylor, has once again made headlines in the cryptocurrency world. In a recent filing with the U.S. Securities and Exchange Commission, the company announced a significant addition to its Bitcoin holdings. Between August 6 and September 12, 2024, MicroStrategy acquired approximately 18,300 Bitcoin, representing a substantial investment of $1.11 billion.
This latest purchase was made at an average price of $60,408 per Bitcoin, including expenses and fees. The move is consistent with MicroStrategy’s ongoing strategy of accumulating Bitcoin, which began on August 11, 2020, when the company made its first Bitcoin purchase.
Growing Bitcoin Portfolio
With this recent acquisition, MicroStrategy’s total Bitcoin holdings have grown to an impressive 244,800 BTC. At current market rates, this stockpile is valued at approximately $14.14 billion. Since initiating its Bitcoin investment strategy in August 2020, the company has invested a cumulative total of around $9.45 billion in Bitcoin, with an average purchase price of $38,585 per BTC.
This aggressive approach to Bitcoin acquisition has been a topic of debate among financial analysts. However, MicroStrategy has remained steadfast in its commitment to this strategy, continuing to expand its holdings despite market fluctuations.
Funding the Purchase
To finance this latest Bitcoin purchase, MicroStrategy took an innovative approach. The company raised funds by selling its own shares through a sales agreement established with several financial institutions on August 1, 2024. By September 12, MicroStrategy had successfully raised approximately $1.11 billion through the sale of 8,048,449 shares under this agreement.
The capital generated from this share sale was directly allocated to expanding the firm’s Bitcoin holdings, demonstrating MicroStrategy’s unwavering commitment to its Bitcoin-centric strategy.
Investment Performance
MicroStrategy’s Bitcoin investment strategy appears to be paying off. As of August 10, 2024, the company held 226,500 BTC in reserves, acquired at an average price of $37,000 per BTC. With Bitcoin trading at approximately $60,500 at that time, MicroStrategy was sitting on unrealized profits of $5.39 billion.
Moreover, the value of MicroStrategy’s stock has seen a remarkable increase since the inception of its Bitcoin strategy in August 2020. The company’s stock price has risen by around 1,000%, outperforming the S&P 500 index by more than 16 times over the same period.
This latest acquisition further solidifies MicroStrategy’s position as a major institutional holder of Bitcoin, and continues to draw attention to the growing trend of corporate Bitcoin adoption.
