MicroStrategy buys more BTC to boost holdings to over 38B dollars
According to an 8-K filing with the Securities and Exchange Commission (SEC) on Monday, MicroStrategy, a business intelligence firm and corporate Bitcoin holder, purchased an additional 15,400 Bitcoin (BTC) for about $1.5 billion between November 25 and December 1 at an average price of $95,976 per Bitcoin. It comes after an additional 3,728,507 MicroStrategy shares were sold for the same sum during the same time frame.
According to the company, as of December 1, there were about $11.3 billion worth of shares left for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities. The company hopes to raise a total of $42 billion in capital over the next three years for additional Bitcoin acquisitions.
MicroStrategy Bitcoin holding now 402,100 BTC
The company currently owns 402,100 Bitcoin, which is worth more than $38 billion. According to Michael Saylor, co-founder and executive chairman of MicroStrategy, the company's entire holdings were purchased at an average price of $58,263 per Bitcoin, coming to a total cost of about $23.4 billion, including fees and expenses.
MicroStrategy has acquired 15,400 BTC for ~$1.5 billion at ~$95,976 per #bitcoin and has achieved BTC Yield of 38.7% QTD and 63.3% YTD. As of 12/2/2024, we hodl 402,100 $BTC acquired for ~$23.4 billion at ~$58,263 per bitcoin. $MSTR https://t.co/K3TK4msGp0
— Michael Saylor⚡️ (@saylor) December 2, 2024
MicroStrategy acquires Bitcoin fourth week in a row
After announcing last Monday that it had purchased a record 55,500 BTC for approximately $5.4 billion in cash at an average estimated price of $97,862 per coin, including fees and expenses, and $4.6 billion worth of Bitcoin the week prior, MicroStrategy has now made its fourth consecutive announcement.
MicroStrategy Bitcoin Yield now 63.3%
MicroStrategy measures the percentage change in its Bitcoin holdings in relation to its diluted shares using a key performance indicator it calls "Bitcoin Yield." In light of the company's strategy of effectively acquiring Bitcoin to benefit shareholders, the firm's year-to-date Bitcoin yield as of December 1 is 63.3%, reflecting a notable increase in holdings while balancing share dilution.
Saylor advises CEO Satya Microsoft to adopt Bitcoin
Michael Saylor, a co-founder of MicroStrategy, advised the board of directors and Microsoft CEO Satya Nadella to adopt Bitcoin as a treasury asset, as it is the best asset the company can own. Saylor went on to say that rather than holding bonds or repurchasing its own stock, Microsoft "makes sense" by purchasing and holding Bitcoin.
Bitcoin is being used by more companies as an inflation hedge
There are other companies pursuing Bitcoin besides MicroStrategy. As a possible inflation hedge, an increasing number of companies are including cryptocurrencies on their balance sheets. Artificial intelligence firm Genius Group, tech solution provider Semler Scientific, Mara, and Japanese investment firm Metaplanet added to the trend of Bitcoin purchases.
MARA suggests issuing a convertible senior note worth $700 million
Bitcoin miner MARA Holdings earlier today also revealed plans to repurchase existing notes and buy more Bitcoin through a second proposed private offering of $700 million zero coupon convertible senior notes. The notes are senior obligations of MARA, will be unsecured, and are not anticipated to accrue interest.
At MARA's option, the notes may be exchanged for cash, MARA common stock, or a mix of the two. Up to $50 million of the net proceeds from the sale will be used by the company to buy back some of its current convertible notes that are due in 2026. The remaining funds will be used to buy more Bitcoin and for other company needs.
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