MicroStrategy, the renowned business intelligence company, recently announced the addition of approximately 18,300 Bitcoin to its portfolio between Aug.6 and Sept.12. The purchase, valued at $1.11 billion, was made with an average price of $60,408 per Bitcoin, inclusive of all expenses and fees. This addition follows the firm’s continuous accumulation of the crypto-asset since its first purchase on Aug. 11, 2020.
This latest acquisition brings MicroStrategy’s Bitcoin holding to an impressive 244,800 BTC – translating to an approximate value of $14.14 billion. Data show that since the company’s initial Bitcoin investment in August 2020, the average purchase price per Bitcoin has been $38,585.
Where did the funds for this significant Bitcoin purchase come from? Interestingly, the capital was raised firstly by selling a substantial number of the company’s shares – around 8,048,449 shares to be exact. This was enabled through a sales agreement with multiple financial institutions enacted on Aug. 1. The resultant $1.11 billion raised was thoroughly dedicated to the expansion of MicroStrategy’s Bitcoin holdings.
Prior to this recent purchase, MicroStrategy maintained a hefty 226,500 Bitcoin reserves as of Aug. 10, which at the time was worth $13.77 billion. The company’s persistent accumulation of Bitcoin and its stellar profits have outperformed the S&P 500 index since August 2020. This impressive strategy has seen the value of MicroStrategy’s stocks surge by an astounding 1,000% since their first Bitcoin investment, dwarfing the returns of the SPX over the same period.