In a significant financial maneuver, MicroStrategy purchased around 18,300 Bitcoin for approximately $1.1 billion between August 6 and September 12, with an average buy-in price of $60,408 per BTC. This information was disclosed in a filing with the US Securities and Exchange Commission (SEC) on September 13.
Recent Purchase and Market Impact
As per data from Coinflip, the company’s newest acquisition has already recorded a paper loss of $2.2 million, highlighting the volatility of the cryptocurrency market.
Funding Sources
The capital for this Bitcoin acquisition was primarily sourced from the sale of over 8 million shares of MicroStrategy stock through a collaborative agreement with multiple financial institutions, including:
- TD Securities
- The Benchmark Company
- BTIG
- Canaccord Genuity
- Maxim Group
- SG Americas Securities
The proceeds from these sales were earmarked to further bolster the company’s Bitcoin holdings. Over the past year, MicroStrategy has vigorously adopted this funding strategy to enhance its assets in Bitcoin. Data from K33 Research indicates that the firm has added approximately 91,000 BTC since September 2023.
“The period from August 2020 to 2021 is the only time showing a higher year-over-year growth in MicroStrategy’s Bitcoin exposure, totaling 105,090 BTC.”
Total Bitcoin Holdings
This recent purchase has boosted MicroStrategy’s overall Bitcoin reserves to 244,800 BTC, valued at over $14 billion at current market prices. The company’s cumulative investment in Bitcoin stands at $9.45 billion, with an average acquisition price of $38,585 per BTC.
According to Saylortracker, MicroStrategy is sitting on an unrealized profit exceeding $4 billion.
Bitcoin Yield Performance
MicroStrategy’s Executive Chairman, Michael Saylor, reported a quarter-to-date Bitcoin yield of 4.4% and a year-to-date yield of 17% on its holdings.
This key performance indicator (KPI) is vital for evaluating the firm’s Bitcoin acquisition strategy. It measures the percentage change in the ratio of MicroStrategy’s Bitcoin holdings to its diluted shares over time.
The company contends that this metric provides investors with greater insight into its decision to finance Bitcoin purchases through additional share issuance or convertible instruments.
Despite the announcement regarding the latest Bitcoin purchase, MicroStrategy shares remained stable in premarket trading, while enjoying a remarkable 91% increase year-to-date.
