Sunday, July 21, 2024

Microstrategy has increased its Bitcoin assets by an additional 5,445 units, elevating its overall portfolio to 158,245 BTC. The firm has disclosed this acquisition in a recent filing with the U.S. Securities and Exchange Commission (SEC), indicating that the purchase occurred in the time frame spanning from August 1 to September 24.

Microstrategy Augments Its Bitcoin Reserves

Listed on Nasdaq, the software analytics company Microstrategy continues to amplify its stake in Bitcoin. Michael Saylor, the organization’s founder and chairman, made a public statement on social media platform X on Monday, specifying the details of the acquisition:

Microstrategy has purchased an additional 5,445 BTC, costing approximately $147.3 million, at an average rate of $27,053 per Bitcoin. As of September 24, 2023, the firm’s Bitcoin holdings stand at 158,245 BTC, acquired at a cumulative cost of roughly $4.68 billion, with an average acquisition price of $29,582 per Bitcoin.

In line with the SEC filing, the new Bitcoin assets were acquired between August 1 and September 24.

Sale of Class A Common Stock Yields $145.3 Million

Moreover, Microstrategy revealed on the same day, September 24, that it had executed the sale of 403,362 units of its Class A common stock. The sales were conducted under an agreement announced on August 1, generating net proceeds of around $145.3 million.

On August 1, Microstrategy confirmed that it had entered into a sales agreement with financial institutions Cowen and Company LLC, Canaccord LLC, and Berenberg Capital Markets LLC to periodically issue and sell Class A common stock. The maximum aggregate value of this stock offering is up to $750 million. The company noted: “We plan to allocate the net proceeds for general corporate initiatives, which include the purchase of Bitcoin and working capital. Additionally, depending on market circumstances, we may use the proceeds for repurchasing or settling our existing debts.”

Current Bitcoin Market Status

As of the latest available data, the price of Bitcoin is $26,097, marking a decrease of nearly 5% over the past week. However, it has appreciated by 57% since the start of the year.

What are your thoughts on the scale of Bitcoin holdings by Microstrategy? Your opinions are welcomed in the comments section.

Frequently Asked Questions (FAQs) about Microstrategy Bitcoin Acquisition

What is the total number of Bitcoin now held by Microstrategy?

As of September 24, 2023, Microstrategy holds a total of 158,245 BTC.

How many additional Bitcoin did Microstrategy acquire recently?

Microstrategy acquired an additional 5,445 BTC during the period between August 1 and September 24, 2023.

What is the average acquisition price of the newly acquired Bitcoin?

The average price for the newly acquired Bitcoin was $27,053 per unit.

How did Microstrategy finance this new Bitcoin purchase?

Microstrategy financed the purchase through the sale of 403,362 units of its Class A common stock, generating net proceeds of around $145.3 million.

Who were the financial institutions involved in Microstrategy’s Class A common stock sale?

Microstrategy entered into a sales agreement with Cowen and Company LLC, Canaccord LLC, and Berenberg Capital Markets LLC for the sale of its Class A common stock.

What is the intended use of the net proceeds from the Class A common stock sale?

Microstrategy intends to use the net proceeds for general corporate purposes, including the acquisition of Bitcoin and working capital. Subject to market conditions, the proceeds may also be used for the repurchase or repayment of existing indebtedness.

What is the current market price of Bitcoin as mentioned in the article?

As of the most recent data, the market price of Bitcoin is $26,097.

How has the Bitcoin market performed over the past week and year-to-date?

The price of Bitcoin has decreased by almost 5% over the last week but has seen an increase of 57% year-to-date.

What is the maximum aggregate value of the Class A common stock offering by Microstrategy?

The maximum aggregate offering price for the Class A common stock is up to $750 million.

Where did Michael Saylor announce the new Bitcoin acquisition?

Michael Saylor, the founder and chairman of Microstrategy, announced the acquisition on a social media platform identified as X.

More about Microstrategy Bitcoin Acquisition

  • Microstrategy’s Official Announcement
  • U.S. Securities and Exchange Commission Filing
  • Michael Saylor’s Social Media Update
  • Cowen and Company LLC Official Website
  • Canaccord LLC Official Website
  • Berenberg Capital Markets LLC Official Website
  • Current Bitcoin Market Price
  • Historical Bitcoin Price Data

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