MicroStrategy purchases over 4B dollars worth of Bitcoin
In a Monday 8-K filing with the Securities and Exchange Commission, MicroStrategy said it had purchased an additional 51,780 Bitcoin (BTC) for about $4.6 billion at an average price of $88,627 per BTC between November 11 and November 17.
MicroStrategy has acquired 51,780 BTC for ~$4.6 billion at ~$88,627 per #bitcoin and has achieved BTC Yield of 20.4% QTD and 41.8% YTD. As of 11/17/2024, we hodl 331,200 $BTC acquired for ~$16.5 billion at ~$49,874 per bitcoin. $MSTR https://t.co/SRRtRrB2jO
— Michael Saylor⚡️ (@saylor) November 18, 2024
Michael Saylor wrote on X to tease this morning's Bitcoin acquisition announcement on X over the weekend. Saylor said, “I think saylortracker.com needs even more green dots.”
MicroStrategy sells 13,593,865 shares
In order to finance the acquisitions, 13,593,865 MicroStrategy shares were sold, making this the company's largest acquisition to date. According to the company press release, as of Nov. 17, there were about $15.3 billion worth of shares left for sale as part of its planned $21 billion in fixed income securities and $21 billion equity offering.
According to Michael Saylor, MicroStrategy's plan to acquire Bitcoin is still in its early stages. The company hopes to raise $42 billion in capital over the next three years for additional Bitcoin acquisitions.
MicroStrategy has revealed its bold new "42" plan, which calls for raising $42 billion to increase its Bitcoin holdings. With all proceeds going toward buying more Bitcoin, the company intends to raise an additional $21 billion through secondary stock offerings and secure $21 billion in debt.
MicroStrategy Bitcoin holdings
Currently, the company holds 331,200 Bitcoin, which is approximately $29.7 billion. MicroStrategy's co-founder and executive chairman, Michael Saylor, stated that the company's entire holdings were purchased at an average price of $49,874 per Bitcoin, which amounted to approximately $16.5 billion, including fees and expenses.
MicroStrategy acquires approximately 27,200 Bitcoin
It was disclosed last Monday that MicroStrategy had paid about $2.03 billion in cash for about 27,200 Bitcoin, with fees and expenses included. The average estimated price of each coin was $74,463.
MicroStrategy Bitcoin yield
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 November 17 is 41.8%, reflecting a notable increase in holdings while balancing share dilution.
Massive Bitcoin purchase by large corporations
Large corporations have been purchasing Bitcoin in large quantities through spot Bitcoin ETFs during the past week alone. Semler Scientific, Metaplanet, Marathon Digital, and MicroStrategy have all increased their holdings of Bitcoin.
The Japanese investment firm Metaplanet Inc. announced earlier today that it would issue ordinary bonds worth 1.75 billion yen ($11.3 million) for a period of one year in order to purchase more Bitcoin. It now plans to further increase its holdings with the most recent bond sale. When Bitcoin is worth $90,000, 122 more would be added to its reserve.
Disclaimer
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