365Crypto
MicroStrategy Buys $1.11 Billion in Bitcoin
MicroStrategy, a business intelligence company, has purchased 18,300 Bitcoin between August 6 and September 12. This purchase, worth $1.11 billion, was made at an average price of $60,408 per Bitcoin, according to a filing with the U.S. Securities and Exchange Commission (SEC).
Bitcoin Holdings Growth
With this recent acquisition, MicroStrategy now holds approximately 244,800 Bitcoin, valued at around $14.14 billion. Since its first Bitcoin purchase in August 2020, the company has spent roughly $9.45 billion, with an average price of $38,585 per Bitcoin.
Funding the Bitcoin Purchase
The funds for this purchase came from selling over eight million company shares. Through a sales agreement with financial institutions on August 1, MicroStrategy raised $1.11 billion by September 12, which was then used to expand its Bitcoin portfolio.
Outperforming the Market
By August 10, MicroStrategy held 226,500 Bitcoin, worth $13.77 billion, and had seen significant returns. The company’s stock (MSTR) has risen by 1,000% since August 2020, far surpassing the S&P 500 (SPX) index over the same period.
Footnote:
- SEC (Securities and Exchange Commission): The U.S. government agency responsible for regulating the securities markets.
- S&P 500 (SPX): A stock market index that tracks the performance of 500 large companies listed on stock exchanges in the U.S.
