Key Takeaways
- MicroStrategy's record $4.6B BTC purchase increases its total holdings to over 331,000 BTC, valued at $16.5B.
- The company funded these acquisitions through share sales and plans another $1.75B note offering to buy more Bitcoin.
- MicroStrategy's stock has surged over 460% in a year, reflecting the impact of its aggressive Bitcoin strategy.
MicroStrategy's Record Bitcoin Purchase
MicroStrategy announced the acquisition of 52,000 bitcoin valued at $4.6 billion, marking its largest purchase to date.
The acquisition was completed between November 11 and November 17, 2024, at an average price of $88,627 per bitcoin.
This purchase increased MicroStrategy’s total bitcoin holdings to over 331,000 bitcoin, worth approximately $16.5B at current market rates.
Last week, MicroStrategy had bought 27,200 bitcoin for approximately $2.03B in cash.
Funding the Acquisition
MicroStrategy financed the acquisition by raising $4.6B through the sale of 13.6 million shares under a sales agreement finalized in October 2024.
The agreement allows the company to issue up to $21 billion worth of shares in collaboration with financial agents such as TD Securities and Barclays.
The company’s average acquisition cost for its bitcoin holdings remains $49,874 per bitcoin, significantly lower than the current price.
Following the announcement, MicroStrategy’s stock surged 9% to reach $371, representing a fivefold increase in value year-to-date.
It's been less than three weeks since @Saylor announced a three-year plan for $MSTR to spent $42 billion buying #Bitcoin. So far, $6.63 billion has already been spent. At this rate the entire plan will be completed in under four months. Then Saylor is gonna need a bigger plan.
— Peter Schiff (@PeterSchiff) November 18, 2024
MicroStrategy Plans to Further Expand Bitcoin Holdings with $1.75B Note Sale
MicroStrategy has also announced a $1.75B private offering of zero-coupon convertible notes maturing in 2029.
The proceeds from the note sale will primarily fund additional bitcoin purchases and general corporate purposes.
The post-Trump bull market has accelerated the company’s growth, boosting its stock price by over 460% in a year.
With these latest acquisitions, MicroStrategy has solidified its position as the world’s largest Bitcoin holder.
Michael Saylor plans to discuss the offering details in a webinar targeted at Qualified Institutional Buyers.
