MicroStrategy Acquires 18,300 Additional Bitcoin

MicroStrategy, a leading business intelligence and software firm, has announced the purchase of approximately 18,300 Bitcoin between August 6 and September 12. According to a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC), the acquisition was valued at $1.11 billion, with an average price of $60,408 per Bitcoin, including fees and expenses.

Led by CEO Michael Saylor, MicroStrategy has been steadily increasing its Bitcoin holdings since making its first purchase on August 11, 2020. With this latest acquisition, the company now holds around 244,800 BTC, valued at approximately $14.14 billion.

On average, MicroStrategy has acquired its Bitcoin at a price of $38,585 per BTC, with a total investment of about $9.45 billion. The firm’s aggressive Bitcoin strategy has been both lauded and criticized by financial analysts, but MicroStrategy continues to increase its BTC portfolio.

The funds for this most recent acquisition were raised through the sale of company shares, facilitated by a sales agreement with various financial institutions on August 1. By September 12, the company had generated $1.11 billion from selling over 8 million shares. This capital was directly allocated to expanding its Bitcoin reserves.

As of August 10, MicroStrategy held 226,500 BTC, worth $13.77 billion, purchased at an average price of $37,000 per Bitcoin. At that time, Bitcoin’s price was approximately $60,500, resulting in $5.39 billion in unrealized profits. Since the company’s initial foray into Bitcoin in 2020, its stock price has surged by around 1,000%, significantly outperforming the S&P 500 index over the same period.

MicroStrategy has effectively become a prominent proxy for Bitcoin in the stock market, offering investors exposure to Bitcoin’s price movements through its fully-liquid options chain.