MicroStrategy, a well-known business intelligence company, has bought around 18,300 Bitcoin between August 6 and September 12. According to a report filed with the U.S. Securities and Exchange Commission (SEC), the company spent $1.11 billion on this latest Bitcoin purchase. The average price paid per Bitcoin was $60,408, including fees and expenses.
Growing Bitcoin Holdings
Led by CEO Michael Saylor, MicroStrategy has been increasing its Bitcoin holdings for over four years, starting with its first purchase on August 11, 2020. With this recent acquisition, the company now owns approximately 244,800 Bitcoin, worth around $14.14 billion at current prices.
Since 2020, MicroStrategy has spent a total of $9.45 billion on Bitcoin, with an average purchase price of $38,585 per Bitcoin. Their strategy of aggressively acquiring BTC has generated both praise and debate among financial experts.
To fund the recent 18,300 Bitcoin purchase, MicroStrategy raised money by selling company shares. Through a sales agreement made with financial institutions on August 1, the company sold over 8 million shares and raised $1.11 billion by September 12. All the capital raised was directed toward expanding its Bitcoin portfolio.
MicroStrategy’s Strong Reserves and Gains
As of August 10, MicroStrategy held 226,500 Bitcoin in reserve, valued at $13.77 billion, with an average purchase price of $37,000 per Bitcoin. At that time, the price of Bitcoin was around $60,500, giving the company $5.39 billion in unrealized profits.
Since August 2020, the value of MicroStrategy’s stock (MSTR) has increased by about 1,000%, outperforming the S&P 500 (SPX), with returns over 16 times higher than the index during the same period.
