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MicroStrategy acquired ~27,200 bitcoin for ~$2 billion in cash

Published 11/11/2024, 14:58
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On Monday (NASDAQ:MNDY), MicroStrategy Incorporated (NASDAQ:MSTR), known for holding the largest corporate Bitcoin treasury, announced the acquisition of approximately 27,200 bitcoins between October 31, 2024, and November 10.

The company's updates come as Bitcoin's value soared past $81,000, following President-elect Donald Trump's favorable stance on digital assets.

The purchase, costing around $2.03 billion in cash, was made at an average price of roughly $74,463 per bitcoin, including fees and expenses. The funds for this investment were sourced from the sale of company shares under previously arranged Sales Agreements.

As of November 10, MicroStrategy's total Bitcoin holdings amounted to approximately 279,420 bitcoins. These were obtained at an average price of about $42,692 per bitcoin, totaling an aggregate purchase price of around $11.9 billion.

Regarding its capital markets activity, MicroStrategy entered into a Sales Agreement on August 1, 2024, with several sales agents, allowing the company to sell up to $2.0 billion of its class A common stock.

A subsequent Sales Agreement on October 30, 2024, expanded the potential offering to $21 billion. By November 10, 2024, the company had sold approximately 7.85 million shares, generating net proceeds of approximately $2.03 billion, which were primarily used to finance its Bitcoin purchases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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