MicroStrategy recently announced that it bought about 27,200 bitcoins between October 31 and November 10. This purchase cost around $2.03 billion. As of November 10, the company holds a total of approximately 279,420 bitcoins, which they acquired at an average price of $42,692.
On Monday, November 11, 2024, MicroStrategy's stock saw an increase. This happened after Bitcoin prices reached new all-time highs over the weekend. The company also mentioned that it raised $2 billion to buy even more Bitcoin.
Bitcoin hit $80,000 for the first time ever on Sunday. It continued to rise, trading around $81,870 on Monday morning. That’s a 2.5% increase in just 24 hours. Over the past week, Bitcoin’s value has jumped by about 18.5%.
MicroStrategy is more than just a business intelligence and cloud services company. It’s now a major player in the Bitcoin market. They call themselves the world’s first “Bitcoin Treasury company.” The stock’s volatility, driven by its Bitcoin holdings, allows MicroStrategy to borrow money at low rates and invest further in Bitcoin.
On November 11, MicroStrategy confirmed the purchase of 27,200 bitcoins at an average cost of $74,463 each. They financed this through sales agreements made on August 1 and October 30. The company sold a total of 7,854,647 shares, bringing in net proceeds of $2.03 billion.
MicroStrategy noted that its August sales agreement is nearly used up. Any future sales of shares will fall under the October agreement. As of November 10, they hold about 279,420 bitcoins, purchased at an average price of $42,692.
At the time of this report, MicroStrategy shares were trading at $299.26, reflecting a 10.7% increase, according to Benzinga Pro.