- MicroStrategy acquired 18,300 Bitcoin at an average price of $60,408 each, increasing holdings to 244,800 BTC.
- Funding for the Bitcoin purchase came from selling over 8 million company shares.
- The company’s Bitcoin investment strategy has significantly outperformed the S&P 500 index since 2020.
MicroStrategy, a notable player in the business intelligence sector, has significantly expanded its Bitcoin portfolio by purchasing 18,300 BTC for $1.11 billion. This latest acquisition was disclosed in a recent SEC filing, detailing purchases made between August 6 and September 12.
Strategic Bitcoin Acquisitions
Under the leadership of CEO Michael Saylor, MicroStrategy has consistently increased its Bitcoin holdings since its initial purchase on August 11, 2020. With this latest acquisition, the company’s total Bitcoin holdings have surged to about 244,800 BTC, valued at approximately $14.14 billion. This move underscores the firm’s bullish stance on Bitcoin as a long-term investment.
The purchased Bitcoins were obtained at an average cost of $60,408 each, inclusive of all related fees. Since its first foray into the cryptocurrency market, MicroStrategy has invested about $9.45 billion, buying Bitcoin at an average price of $38,585 each.
Funding the Crypto Investments
To finance this substantial purchase, MicroStrategy utilized funds obtained from selling its company shares. This was facilitated through a sales agreement with several financial institutions, initiated on August 1. By September 12, the company had raised approximately $1.11 billion from the sale of 8,048,449 shares, specifically for augmenting its Bitcoin reserves.
Impressive Market Performance
The aggressive investment strategy in Bitcoin has not only expanded MicroStrategy’s asset base but also significantly enhanced its market performance. As of August 10, the company had unrealized profits of $5.39 billion, with its Bitcoin reserves then valued at around $13.77 billion, reflecting a substantial appreciation from their purchase price.
Since August 2020, MicroStrategy’s stock has seen an astronomical rise, approximately 1000%, which is significantly higher than the returns seen by the S&P 500 index during the same period. This performance highlights the potential lucrative nature of substantial and strategic investments in digital assets like Bitcoin.
