Recent Bitcoin Purchase
MicroStrategy acquired approximately 18,300 Bitcoin for $1.1 billion between August 6 and September 12. This purchase was made at an average price of $60,408 per BTC, according to a September 13 filing with the SEC. However, due to Bitcoin’s volatility, the purchase has already resulted in a paper loss of $2.2 million.
Funding Details
To finance this acquisition, MicroStrategy sold over 8 million company shares through agreements with TD Securities, The Benchmark Company, BTIG, Canaccord Genuity, Maxim Group, and SG Americas Securities. The funds raised from these sales were used directly to expand the company’s Bitcoin holdings.
Aggressive Accumulation
MicroStrategy has been actively pursuing this funding strategy over the past year. K33 Research indicates that the company has purchased around 91,000 BTC from September 2023 to the present. Notably, “August 2020-21 is the only period featuring a higher year-over-year growth in MSTR’s BTC exposure of 105,090 BTC.”
Current Bitcoin Holdings
With this latest acquisition, MicroStrategy now holds a total of 244,800 BTC, valued at over $14 billion based on current prices. The company’s total Bitcoin investment amounts to $9.45 billion, with an average purchase price of $38,585 per Bitcoin. According to Saylortracker data, the firm has an unrealized profit of more than $4 billion.
Bitcoin Yield Performance
MicroStrategy Executive Chairman Michael Saylor reported a Bitcoin yield of 4.4% for this quarter and 17% year-to-date. This yield metric, mentioned in the SEC filing, helps evaluate the firm’s Bitcoin acquisition strategy. It measures the percentage change in the ratio of MicroStrategy’s Bitcoin holdings to diluted shares.
Market Reaction
Despite the latest purchase, MicroStrategy’s shares have remained stable in premarket trading. However, the stock has risen 91% year-to-date.
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