On September 20, MicroStrategy disclosed in a filing to the US Securities and Exchange Commission (SEC) that it had acquired 7,420 BTC for an estimated $458.2 million, averaging $61,750 per Bitcoin. The purchasing period spanned from September 13 to September 19.
The SEC report indicated that MicroStrategy financed this acquisition with funds raised from a recent senior notes offering that amassed a total of $1.01 billion. Interestingly, the original target for these debt notes was set at $700 million, but due to heightened interest, the company opted to increase the figure to $875 million.
This recent purchase follows MicroStrategy’s earlier acquisition of around 18,300 BTC, costing over $1 billion, which was funded by selling more than 8 million shares of the company.
With these transactions, MicroStrategy’s total Bitcoin holdings have now reached 252,220 BTC, with a cumulative investment of $9.90 billion, resulting in an average cost of $39,266 per Bitcoin, inclusive of fees and other expenses.
According to data from SaylorTracker, the current market value of MicroStrategy’s Bitcoin holdings stands at approximately $15.84 billion, indicating an unrealized profit of around $6 billion.
The company, led by Michael Saylor, has also reported a quarterly Bitcoin yield of 5.1%, with a remarkable year-to-date yield of 17.8%.
In response to this news, as reported by Yahoo Finance, MSTR shares saw a slight increase of 0.18% at press time.
Increase in Interest Surrounding MicroStrategy ETFs
The strategic Bitcoin acquisitions by MicroStrategy have coincided with a noticeable rise in interest regarding the firm’s exchange-traded funds (ETFs).
Bloomberg Intelligence ETF analyst Eric Balchunas noted that two newly launched leveraged MicroStrategy ETFs are experiencing extraordinary volatility and garnering significant market attention.
Balchunas highlighted that the long MicroStrategy ETF achieved $2 million in trading volume on its inaugural day and was projected to reach $10 million by midday on September 19. He pointed out that this kind of early success is rare, as only about 1-2% of ETF launches see such volumes early on.
Commenting on these figures, Greg King, founder of Osprey Funds, mentioned that these ETFs present “one of the most leveraged ways to invest in BTC” in the current market landscape.
Additionally, this is not the first leveraged MicroStrategy fund; Defiance ETFs launched a 1.75x MicroStrategy ETF on August 15, which has recently exceeded $200 million in assets.