- Details of MicroStrategy’s Purchase
- MicroStrategy’s Bitcoin Growth
- Influence of MicroStrategy’s Purchase
- What You Should Know
Business Intelligence and Software company, MicroStrategy, publicly declared that it has purchased roughly 18,300 Bitcoin—BTC between Aug. 6 and Sept. 12.
Details of MicroStrategy’s Purchase
MicroStrategy not long ago acquired 18,300 Bitcoin, which has strengthened its stand as a distinguished holder of BTC. The financing behind the recent purchase was through the sales of over eight million of the company’s shares, through a sales agreement with several institutions on Aug 1, 2024.
According to the SEC filing, the revenue from the sales of an aggregate of 8,048,449 shares under the Sales Agreement” raised approximately $1.11 billion by Sept. 12.
MicroStrategy’s Bitcoin Growth
Due to the recent bitcoin buys, the company has increased their BTC holdings to 244,800 BTC, currently worth around $14.14B.
The intermediate purchase price for MicroStrategy’s BTC purchases since August 2020 is $38,585 per BTC, with a gradual investment of around $9.45B.
Influence of MicroStrategy’s Purchase
On Aug. 10, MicroStrategy held 226,500 BTC, worth $13.77B, in reserves, acquired at an average price of $37,000 per BTC.
At the time of this purchase, the BTC’s price was approximately $60,500, and MicroStrategy had $5.39B in unrealized profits. Since August 2020, it has effectively outperformed the S&P 500 index.
The value of MicroStrategy’s stock rose by around 1,000% since August 2020, equating to over 16.25x the returns of the SPX over the same period.
What You Should Know
MicroStrategy’s purchase has given their BTC yield a 4.4% QTD (From beginning of the Quarter until day of Today) and 17.0% YTD (From beginning of the Year until day of Today) which has massively expanded their holdings of BTC over the past four years.
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