MicroStrategy has made headlines again. They just acquired 27,200 Bitcoin for about $2.03 billion. This purchase took place over ten days, from October 31 to November 10, 2024.
Now, MicroStrategy holds a total of 279,420 Bitcoin. They bought these at an average price of $42,692 each.
The recent Bitcoin purchase came at an average price of $74,463 per Bitcoin, including all fees. Overall, MicroStrategy has spent roughly $11.9 billion on their Bitcoin holdings.
How did they fund this acquisition? They raised money through stock sales under two agreements with financial institutions like TD Securities and Barclays. By selling shares, they brought in $2.03 billion. This is part of a strategy by executive chairman Michael Saylor to increase the company's Bitcoin reserves.
As of November 10, MicroStrategy sold a total of 7,854,647 shares through these arrangements. This effectively wrapped up their August Sales Agreement and shifted future stock sales to the October Sales Agreement.
MicroStrategy views Bitcoin as a strategic reserve asset. They aim for long-term holdings that give them exposure to digital assets instead of traditional capital. Michael Saylor has been vocal about Bitcoin's potential to improve corporate financial health. In a recent earnings call, he mentioned how Bitcoin can “fix the balance sheet” and boost stock and options values.
Saylor even suggested to Microsoft CEO Satya Nadella that Bitcoin could be a trillion-dollar opportunity for shareholders. MicroStrategy's strategy seems to be working. They recently reported over $10 billion in unrealized profits from their Bitcoin investments, especially as Bitcoin’s value surpassed $82,000. This positions MicroStrategy as a leader in corporate Bitcoin adoption, with their holdings now valued at over $20 billion.
As corporate interest in Bitcoin grows, MicroStrategy's approach will likely be a hot topic at Benzinga's Future of Digital Assets event on November 19. Experts will discuss how Bitcoin is evolving in corporate treasuries and the digital asset landscape.