Stock Market

Microstrategy acquires another 55,500 bitcoins

Investing | Tue, Nov 26 2024 02:05 AM AEDT

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Image Source: Sivastatz

Investing.com -- MicroStrategy, Inc. (MSTR) has significantly expanded its Bitcoin holdings once again, purchasing approximately 55,500 bitcoins for $5.4 billion in cash between November 18 and November 24, 2024.

The company revealed in a filing released Monday that the purchase was executed at an average price of $97,862 per bitcoin, inclusive of fees and expenses.

The funding for this major acquisition was drawn from two sources: the company's recent $3 billion convertible notes offering and proceeds from the sale of shares under its at-the-market (ATM) equity program.

The convertible senior notes, due 2029, featured a 0% interest rate and a conversion premium of 55% over the stock's weighted average trading price, raising approximately $2.97 billion in net proceeds.

Additionally, MicroStrategy raised $2.46 billion by selling 5.6 million shares of its Class A common stock through multiple sales agents.

Following its latest Bitcoin acquisition, MicroStrategy now holds a total of approximately 386,700 bitcoins, valued at an aggregate purchase price of $21.9 billion.

The company's average acquisition cost for these holdings stands at $56,761 per bitcoin, including fees and expenses.

MicroStrategy has remained committed to its Bitcoin strategy, with CEO Michael Saylor frequently positioning the cryptocurrency as a strategic asset for the company. This latest purchase underscores the firm's confidence in the premier cryptocurrency.

As of November 24, 2024, the company still has $12.8 billion available for issuance and sale under its ATM equity program, leaving room for potential further investment in Bitcoin or other corporate initiatives.

This article first appeared in Investing.com

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