MicroStrategy, a prominent business intelligence firm, has significantly increased its Bitcoin holdings, purchasing about 18,300 Bitcoins between August 6 and September 12. This recent acquisition, documented in a Form 8-K filed with the United States Securities and Exchange Commission (SEC), involved a $1.11 billion expenditure, averaging $60,408 per Bitcoin, inclusive of expenses and fees.
Since its initial Bitcoin purchase on August 11, 2020, under the guidance of CEO Michael Saylor, MicroStrategy has aggressively expanded its Bitcoin investments. The company now holds approximately 244,800 BTC, valued at roughly $14.14 billion. The average purchase price of the accumulated Bitcoins since August 2020 stands at $38,585 per Bitcoin, totaling about $9.45 billion in investment.
This strategy of substantial Bitcoin acquisition has stirred both debate and commendation among financial analysts, yet MicroStrategy has persistently pursued its course in bolstering its Bitcoin reserves. The funds for the latest purchase were sourced from the sale of company shares, facilitated by an agreement with several financial institutions established on August 1. By September 12, according to SEC filings, MicroStrategy had raised approximately $1.11 billion by selling 8,048,449 shares. The capital from this substantial share sale was directly used to increase the company’s Bitcoin portfolio.
As of August 10, MicroStrategy’s Bitcoin assets included 226,500 BTC valued at $13.77 billion, acquired at an average price of $37,000 per Bitcoin. At that time, Bitcoin’s price hovered around $60,500, providing MicroStrategy with $5.39 billion in unrealized profits. Since starting its Bitcoin investments in August 2020, MicroStrategy’s strategy has not only surpassed the performance of the S&P 500 index but also led to a dramatic 1,000% increase in the value of its MSTR stock, amounting to returns over 16 times those of the S&P 500 during the same timeframe.
