MicroStrategy, known for its substantial corporate Bitcoin investments, recently disclosed the purchase of approximately 15,400 BTC over the period from November 25 to December 1. This acquisition, financed through $1.5 billion raised via a stock sale under its at-the-market (ATM) equity program, reflects an average purchase price of $95,976 per Bitcoin.
In a recent filing with the United States Securities and Exchange Commission on December 2, MicroStrategy revealed that it sold 3.7 million shares of its Class A common stock during the same period, netting $1.48 billion. These proceeds were directly used to fund the Bitcoin purchase, underscoring the company’s aggressive strategy in increasing its Bitcoin holdings.
As of December 1, MicroStrategy and its subsidiaries possess a total of 402,100 BTC, valued at approximately $38.4 billion at current market prices. The total cost for these holdings averages $58,263 per Bitcoin, representing a 64% profit on their Bitcoin investments.
The recent $1.5 billion investment follows a larger acquisition the previous week. Between November 18 and 24, MicroStrategy purchased an additional 55,000 BTC for $5.4 billion at an average price of $97,862 per Bitcoin. This massive purchase was funded through various sources, including a private offering of 0% convertible senior notes due in 2029 and further proceeds from the ATM equity program.
Michael Saylor’s Advocacy for Bitcoin
Michael Saylor, MicroStrategy’s executive chairman and a vocal Bitcoin advocate, has extended his bullish outlook on Bitcoin to other major tech corporations, notably Microsoft. Saylor recently pitched to Microsoft’s board, suggesting that adopting a Bitcoin-focused investment strategy could potentially boost its market capitalization by nearly $5 trillion.
Saylor urged Microsoft to convert its dividend payouts, stock buybacks, cash flows, and debt into Bitcoin, positing that such a move could increase its stock price by hundreds of dollars. He projected that Bitcoin could add as much as $584 to Microsoft’s share price over the next decade, arguing that this strategy would create trillions of dollars in enterprise value and reduce shareholder risk.
| Date Range | BTC Purchased | Total Spend | Average Price per BTC | Resulting Market Value |
|---|---|---|---|---|
| Nov 18-24, 2024 | 55,000 | $5.4 billion | $97,862 | Significant appreciation |
| Nov 25-Dec 1, 2024 | 15,400 | $1.5 billion | $95,976 | Continued growth |
| Total Holdings | 402,100 | $23.4 billion | $58,263 | $38.4 billion |
MicroStrategy’s continued investment in Bitcoin represents a visionary approach within the corporate sphere, driven by Michael Saylor’s firm belief in Bitcoin’s potential as the next major technological wave. This aggressive strategy not only highlights the possibilities of digital assets as a hedge against economic volatility but also reflects a broader trend of integrating cryptocurrency into traditional corporate finance strategies. Whether this bold move will pave the way for other corporations to follow suit or if it will be seen as a speculative anomaly remains a topic of significant debate and interest within the financial community.
Featured image credit: MicroStrategy via Flickr
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