MicroStrategy Bitcoin Acquisition
MicroStrategy, a publicly traded business intelligence company, has made significant investments in Bitcoin (BTC) over the past few years. The firm, led by Executive Chairman Michael Saylor, has adopted a strategy of acquiring Bitcoin as a primary treasury asset. This approach has positioned MicroStrategy as one of the largest corporate holders of Bitcoin globally.
Recent Acquisitions
As of September 2024, MicroStrategy announced that it purchased an additional 7,420 BTC between September 13 and September 19 for approximately $458.2 million. The average purchase price during this acquisition was about $61,750 per Bitcoin. Following this purchase, MicroStrategy’s total holdings increased to approximately 252,220 BTC, valued at nearly $16 billion based on current market prices.
The funding for this latest acquisition came from an upsized convertible note offering that raised $1.01 billion. This increase in capital was initially set at $700 million but was later adjusted to accommodate the growing demand for Bitcoin investments.
Historical Context
MicroStrategy’s journey into Bitcoin began in August 2020 when it made its first purchase of BTC. Since then, the company has consistently expanded its holdings through various means, including selling shares and issuing debt instruments. For instance, prior to the recent acquisition in September 2024, MicroStrategy had acquired approximately 18,300 BTC between August 6 and September 12 for around $1.11 billion at an average price of $60,408 per Bitcoin.
Overall, since initiating its investment strategy in Bitcoin, MicroStrategy has accumulated a total investment of around $9.9 billion across all purchases with an average purchase price of approximately $39,266 per BTC.
Impact on Financial Performance
MicroStrategy’s aggressive accumulation of Bitcoin has sparked considerable debate within financial circles regarding the risks and rewards associated with such a strategy. Despite fluctuations in the cryptocurrency market, MicroStrategy’s stock performance has significantly outpaced traditional indices like the S&P 500 since it began investing in Bitcoin.
As of August 10, prior to their latest acquisitions, MicroStrategy held about 226,500 BTC worth approximately $13.77 billion at that time’s market value. This resulted in substantial unrealized profits for the company as Bitcoin prices surged.
