MicroStrategy, a publicly traded software and business intelligence company, has disclosed that it acquired approximately 18,300 Bitcoin between August 6 and September 12.
According to the company’s Form 8-K submitted to the United States Securities and Exchange Commission (AEC), the acquisition, valued at $1.11 billion, was executed at an average price of $60,408 per Bitcoin, including expenses and associated fees.
Over the past four years, the organization has continued to increase its BTC holdings following its initial acquisition on August 11, 2020, under the leadership of renowned CEO Michael Saylor.
Bitcoin’s expansion
With the procurement of approximately 244,800 BTC, the company’s BTC holdings have reached a current value of roughly $14.14 billion.
MicroStrategy has invested approximately $9.45 billion in Bitcoin since August 2020, with an average purchase price of $38,585 per BTC.
Although MicroStrategy’s aggressive approach has resulted in both praise and debate from financial analysts over the years, the company has not slowed down its acquisition of BTC.
The source of funds for the BTC purchase
On August 1, the company’s shares were sold to raise the funds necessary to purchase the most recent 18,300 BTC. This was made possible by a sales agreement with multiple financial institutions.
MicroStrategy had raised approximately $1.11 billion by September 12 from selling “an aggregate of 8,048,449 Shares under the Sales Agreement,” as indicated in the SEC filing.
The firm’s BTC holdings and portfolio size were directly increased via the direct allocation of the capital raised from the sale of these over eight million shares.
MicroStrategy surpasses Buffet’s cautionary pronouncement
On August 10, MicroStrategy possessed 226,500 BTC, valued at $13.77 billion, and acquired an average price of $37,000 per BTC.
Bitcoin was approximately $60,500 then, and MicroStrategy had $5.39 billion in unrealized profits. Effectively, it has outperformed the S&P 500 (SPX) index since August 2020.
The value of MicroStrategy’s MSTR stock has increased by approximately 1,000% since August 2020, equivalent to over 16.25 times the returns of the SPX during the same period.
