Microstrategy Tops Bitcoin Stash With Additional $1.11B Purchase

The business intelligence firm MicroStrategy, which is also the largest corporate holder of bitcoin (BTC), has increased its holdings of the digital asset once again with a billion-dollar purchase.

According to Form 8-K filing with the United States Securities and Exchange Commission (SEC), MicroStrategy bought an additional 18,300 bitcoins for roughly $1.11 billion in cash at an average price of $60,409 per coin.

MicroStrategy Buys $1.11B BTC

MicroStrategy made the latest purchase between August 6 and September 12, 2024. The company now holds 244,800 bitcoins worth nearly $9.45 billion, purchased at an average price of $38,585 per coin, inclusive of fees and expenses.

The business intelligence firm bought the bitcoins using proceeds from the issuance and sale of its shares under a sales agreement it entered on August 1 with six investment banking firms, including TD Securities, The Benchmark Company, BTIG, Canaccord Genuity, Maxim Group, and SG Americas Securities.

The sales agreement entailed MicroStrategy issuing and selling shares of its class A common stock at a value of $0.001 per share with an aggregate offering price of up to $2 billion. As of September 12, MicroStrategy had sold 8,048,449 Shares under the agreement for approximately $1.11 billion in net proceeds.

YTD BTC Yield at 17%

Following the recent BTC purchase, MicroStrategy says its BTC yield now sits at 4.4% from July 1 to September 12 and 17% from January 1 to September 12, 2024. 

“The Company uses BTC Yield as a KPI to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders. The Company believes this KPI can be used to supplement an investor’s understanding of its decision to fund the purchase of bitcoin by issuing additional shares of its common stock or instruments convertible to common stock,” MicroStrategy stated in the SEC filing.

Exactly a month ago, MicroStrategy marked its fourth year of acquiring BTC. The company began this journey in August 2020 and has consistently topped its stash since then. While MicroStrategy’s primary reason for acquiring BTC was fighting inflation, the decision has positively impacted the company’s stock, MSTR, which has outperformed 499 of the 500 stocks in the S&P 500 index.