MicroStrategy Acquires $1.5 Billion Bitcoin as Saylor Pushes for Microsoft Integration
MicroStrategy, a company known for its significant Bitcoin holdings, recently made a big move by acquiring 15,400 Bitcoin between November 25th and December 1st. This purchase, totaling around $1.5 billion, was made at an average price of $95,976 per Bitcoin. To fund this acquisition, the company conducted a stock sale under its at-the-market (ATM) equity program, raising $1.5 billion. They did this by issuing 3.7 million Class A shares, resulting in $1.48 billion in net proceeds, according to a December 2nd SEC filing.
Now, with this latest investment, MicroStrategy and its subsidiaries hold a total of 402,100 Bitcoin, valued at approximately $38.4 billion based on current market prices. The company’s total purchase cost for all its Bitcoin holdings amounts to $23.4 billion, averaging out to $58,263 per Bitcoin.
This recent move follows a previous purchase made between November 18th and 24th when MicroStrategy bought 55,000 Bitcoin for $5.4 billion at an average price of $97,862 per Bitcoin. The funding for that acquisition came from a private offering of 0% convertible senior notes due in 2029 and the ongoing ATM equity program.
Michael Saylor, the executive chairman of MicroStrategy, has been vocal about advocating for Bitcoin adoption by other corporations. Recently, he made a pitch to Microsoft, suggesting that the tech giant could increase its market capitalization by almost $5 trillion by including Bitcoin in its corporate strategy. Saylor proposed reallocating dividends, stock buybacks, cash flows, and debt into Bitcoin investments, claiming this move could potentially boost Microsoft’s stock price by up to $584 per share over the next ten years. He also argued that this strategy could position Microsoft to take advantage of emerging trends and mitigate risks for shareholders.
MicroStrategy’s continued emphasis on Bitcoin as a fundamental part of its corporate ethos showcases its long-term commitment to the cryptocurrency, despite the inherent risks associated with market volatility.
