MicroStrategy converts $1.1B in shares to Bitcoin, boosting holdings to 244,800 BTC

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Cryptopolitan2024/09/12 16:00

By:By Nellius Irene

Share link:In this post: From August 6 to September 12, 2024, MicroStrategy bought 18,300 BTC for $1.1 billion shares. MicroStrategy’s Bitcoin holdings grew with its latest accumulation, settling at 244,800 bitcoins. The company had previously purchased 12,222 BTC in the second quarter of 2024 for about $805 million.

In just five weeks, the Virginia-based MicroStrategy invested over $1.1 billion worth of shares into Bitcoin. This investment raises the company’s Bitcoin holdings to 244,800 BTC, each acquired at an average price of $38,585.

The company has acquired Bitcoin since August 2020, and its co-founder, Michael Saylor has consistently praised the asset’s potential. He also posted about MicroStrategy’s latest acquisition on X in his usual fashion.

The Form 8-K SEC filing verified the purchase, noting that the company had sold more than 8,048,449 shares under the sales agreement, resulting in net proceeds of about $1.11 billion, excluding sales commissions.

This investment follows MicroStrategy’s announcement of its plans to sell up to $2 billion in shares for Bitcoin investments at the start of August. However, since that revelation, the business intelligence company has seen its share prices plummet by 20%.

MicroStrategy (MSTR) Price Performance. Source: TradingView

MicroStrategy continues to accumulate Bitcoin

In the second quarter of 2024, the cloud software company purchased 12,222 BTC for over $805 million, with each Bitcoin costing roughly $65,880.

See also Blockchains achieving revenue-to-expense ratios comparable to company stocks

Despite the Bitcoin price fall in July, the company still acquired 169 BTC, spending $11.4 million. At the time, its cumulative Bitcoin holdings stood at 226,500 BTC, valued at around $14.6 billion, with the firm having invested over $8.3 billion over the years to purchase these BTC at an average price of $36,821.

After Q2’s bitcoin investment announcement, Phong Le, MicroStrategy’s CEO, said the company’s Bitcoin holdings are valued at 70% more than the cost at which they were acquired, reflecting the success of their Bitcoin strategy in the quarter.

Phong Le expressed strong optimism about Bitcoin adoption, emphasizing the improved understanding of Bitcoin today. He also noted the growing bipartisan support from politicians and institutions, as showcased at the Bitcoin 2024 Conference in Nashville.

MicroStrategy has spent almost $9.45 billion in Bitcoin investments and purchases.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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