Business intelligence firm and corporate bitcoin holder MicroStrategy acquired an additional 55,500 BTC for approximately $5.4 billion at an average price of $97,862 per bitcoin between Nov. 18 and Nov. 24, according to an 8-K filing with the Securities and Exchange Commission on Monday.
It represents the company's largest set of acquisitions to date and follows the completion of a $3 billion debt offering on Nov. 21, with net proceeds of $2.97 billion and the sale of a further 5,597,849 MicroStrategy shares between Nov. 18 and Nov. 24 for approximately $2.46 billion. As of Nov. 24, the company said approximately $12.8 billion worth of shares remained available for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities, targeting a total $42 billion capital raise over the next three years for further bitcoin acquisitions.
The company now holds 386,700 BTC, worth over $37 billion. MicroStrategy’s total holdings were bought at an average price of $56,761 per bitcoin, a total cost of around $21.9 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor.
MicroStrategy's latest announcement is the third week in a row following news last Monday that it had acquired approximately 51,780 BTC for roughly $4.6 billion in cash at an average estimated price of $88,627 per coin, including fees and expenses, and $2 billion worth of bitcoin the week before.
MicroStrategy uses a key performance indicator it calls “Bitcoin Yield” to measure the percentage change in its bitcoin holdings relative to its diluted shares. As of Nov. 24, the firm’s year-to-date Bitcoin Yield is 35.2%, reflecting significant growth in holdings while balancing share dilution amid the company’s strategy of acquiring bitcoin efficiently to benefit shareholders.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
