MicroStrategy (MSTR.US) recently purchased a record $4.6 billion in bitcoin, cashing in on its plan announced last month to accelerate cryptocurrency purchases using capital markets.
According to a filing submitted by the U.S. Securities and Exchange Commission on Monday, the company's corporate strategy includes purchasing digital assets. The company purchased approximately 51,780 bitcoins between November 11 and November 17. Previously, the company purchased over 27,000 bitcoins between October 31 and November 10, and made two large acquisitions in September. The company currently holds bitcoins worth approximately $30 billion.
MicroStrategy has begun raising more funds to purchase bitcoin. The company announced later on Monday that it would issue an additional $1.75 billion in convertible senior notes, due in 2029, with part of the proceeds being used to buy more tokens.
MicroStrategy accelerates bitcoin purchases
MicroStrategy co-founder and chairman Michael Saylor decided to invest in bitcoin in 2020 as a hedge against inflation. The company initially made purchases using cash and has since shifted to using the proceeds from issuing and selling stock and convertible bonds to leverage its purchasing power. On October 30, the company announced it had hired banks to help raise $42 billion through the sale of new shares and fixed income to buy more bitcoin.
Documents show that as of the week ending November 17, MicroStrategy sold 13.6 million shares of stock on the market under its so-called 'at-the-market' program. These sales are part of a record $21 billion plan that allows the company's bankers to create stock and sell it to the market. Data shows that the funds raised over the past week alone would make it the fourth-largest at-the-market transaction, indicating strong demand for the company's stock.
The company is currently the largest institutional holder of bitcoin, having purchased a total of 331,200 bitcoins at a total price of about $16.5 billion—far below their current value.
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