bullish

2024

Bitcoin

Yield

MicroStrategy purchased an additional 7,420 Bitcoin (BTC) between September 13 and 19, 2024, according to a&nbsp;<a style="text-decoration:none" href="https://www.sec.gov/Archives/edgar/data/1050446/000119312524222498/d822569d8k.htm" rel="noopener noreferrer nofollow">filing</a> to the U.S. Securities and Exchange Commission on Sept. 20.&nbsp;
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 MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#bitcoin</a> and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> acquired for ~$9.9 billion at ~$39,266 per bitcoin. <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MSTR</a> <a href="https://t.co/JUtgztpzBu" rel="noopener noreferrer nofollow">https://t.co/JUtgztpzBu</a>— Michael Saylor⚡️ (@saylor) <a href="https://twitter.com/saylor/status/1837116692209574119?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 20, 2024</a>
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The company spent approximately $458.2 million for the acquisition, with an average price of $61,750 per Bitcoin.&nbsp;
<h2 id="span-span-microstrategy-s-latest-bitcoin-purchase-span-span">MicroStrategy’s Latest Bitcoin Purchase</h2>
MicroStrategy now holds 252,220 Bitcoin, having invested a total of $9.9 billion. This equates to an average cost of $39,266 per BTC.&nbsp;
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At current prices, this makes the firm’s Bitcoin holdings worth close to $16 billion, giving them an unrealized profit of around $6 billion.&nbsp;
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The recent purchase of 7,420 BTC further cements MicroStrategy’s position as the company with the largest Bitcoin holdings among public firms. MicroStrategy now holds more than 1% of all Bitcoin ever mined, surpassing major firms like Tesla in terms of BTC holdings.&nbsp;
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CEO Michael Saylor has been a vocal advocate for Bitcoin, often describing it as a hedge against inflation and a superior store of value. During his tenure at MicroStrategy, the company's bitcoin investments grew exponentially, and it issued multiple debt products to finance its Bitcoin acquisitions.
<h2 id="span-span-financing-the-acquisition-span-span">Financing the Acquisition</h2>
MicroStrategy recently expanded its note offering to $1.01 billion, an increase from the previously planned&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/michael-saylor-s-micro-strategy-to-issue-700-m-in-senior-convertible-notes-to-buy-more-bitcoin" rel="noopener noreferrer nofollow">$700 million</a>. A substantial part of the proceeds were used to acquire more Bitcoin, as the company continues to bet heavily on the cryptocurrency’s long-term value.&nbsp;
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The company’s move to issue debt to purchase Bitcoin has also been followed by other firms. Companies like Marathon Digital and Semler Scientific have issued debt to buy Bitcoin, but none have matched the scale of MicroStrategy’s investments.
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However MicroStrategy increased its lead over Marathon Digital, the next largest publicly traded Bitcoin holder, by more than 226,000 Bitcoin.
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This recent addition comes just a week after another massive purchase on September 13, when the firm acquired 18,300 Bitcoin for&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/micro-strategy-buys-another-1-11-b-in-bitcoin-reaches-244-800-btc-holdings" rel="noopener noreferrer nofollow">$1.11 billion</a> at an average price of $60,408. This brings the total number of Bitcoin added to the company’s balance sheet in the third quarter to 25,720.
<h2 id="span-span-bitcoin-as-a-treasury-asset-span-span">Bitcoin as a Treasury Asset</h2>
MicroStrategy first ventured into Bitcoin in August 2020, establishing the cryptocurrency as a core part of its capital allocation strategy. Since then, the firm has continually increased its Bitcoin holdings, with each purchase supporting its belief in Bitcoin’s long-term value.
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MicroStrategy’s shares have also benefited from its bullish stance on Bitcoin, which more than doubled in one year and&nbsp;<a style="text-decoration:none" href="https://finance.yahoo.com/quote/MSTR/" rel="noopener noreferrer nofollow">trading at $145.27</a>, at the time of writing. As of September 19, the company’s Bitcoin yield—measuring the percentage change in Bitcoin holdings relative to its shares outstanding—was up to 5.1% for the quarter.
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While this latest purchase strengthens MicroStrategy’s leadership in the Bitcoin market, the company has signaled that more acquisitions are likely to follow. In last week's&nbsp;<a style="text-decoration:none" href="https://assets.contentstack.io/v3/assets/bltb564490bc5201f31/bltc0f598dc56812f33/66e42a15ddf6a7127bef9804/form-8-k_09-13-2024.pdf" rel="noopener noreferrer nofollow">regulatory filing</a>, MicroStrategy reported it had approximately $889 million left over from a $2 billion equity issuance.

MicroStrategy Acquires 7,420 More Bitcoin, Bringing Total Holdings to 252,220 BTC

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