- MicroStrategy bought more Bitcoins for billions of dollars.
- The company funded the purchase using proceeds from a recent convertible note offering and the sale of shares.
- MicroStrategy and its subsidiaries now hold 386,700 BTC, valued at over $37 billion.
Business intelligence firm MicroStrategy bought additional Bitcoin for billions of dollars, reaffirming its status as the leading corporate holder of the world’s largest crypto asset by market cap.
The Virginia-based company embarked on a Bitcoin buying spree in August 2020, when the asset traded slightly above $10,000. BTC has since surged over 800% and was trading at $97,617 at the time of writing, underscoring its growing value amid scarcity and rising demand.
MicroStrategy’s Latest Bitcoin Purchase
According to a Monday 8-K filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy purchased 55,500 Bitcoins for approximately $5.4 billion, marking its largest set of acquisitions to date.
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The Bitcoins were acquired between November 18 and November 24 at an average price of $97,862 per BTC, including fees and expenses.
The company said it funded the purchase using proceeds from convertible notes offering and issuance and sale of shares under an agreement with TD Securities, Barclays Capital, Cantor Fitzgerald, and others.
Per the filing, MicroStrategy had sold 5,597,849 shares for $2.46 billion as of November 24, leaving about $12.8 billion worth of shares available for further sale and issuance to fund its ambitious $42 billion capital raise over the next three years for Bitcoin acquisition.
Following the massive purchase, MicroStrategy and its subsidiaries now hold 386,700 BTC. The company’s chairman, Michael Saylor , confirmed that these Bitcoins cost an average of $56,761 per BTC, translating to a total cost of $2.1 billion, including fees and expenses.
The development marked MicroStrategy’s third Bitcoin purchase in under a month, following an announcement last week that it had bought 51,780 BTC for $4.6 billion.
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