MicroStrategy has further expanded its crypto assets by purchasing an additional 51,780 bitcoins, marking one of the company's largest transactions.
New Bitcoin Acquisition
According to a filing with the Securities and Exchange Commission (SEC), MicroStrategy purchased 51,780 bitcoins for nearly $4.6 billion between November 11 and November 17, at an average price of $88,627 per bitcoin.
Financing Acquisition Strategy
The purchase was funded by selling 13,593,865 company shares. MicroStrategy plans to raise $42 billion over the next three years to finance further bitcoin acquisitions. As of November 17, the company had approximately $15.3 billion worth of shares available for sale as part of a $21 billion stock offering and $21 billion in fixed income instruments.
Current Market Value of Assets
The current market value of MicroStrategy's 331,200 bitcoins stands at about $29.7 billion. Co-founder and Executive Chairman Michael Saylor reported that the total cost of acquiring all these assets, including fees and expenses, was approximately $16.5 billion, or $49,874 per bitcoin. According to the latest report, the company purchased 27,200 bitcoins for $2.03 billion, or an average of $74,463 each (excluding fees and expenses).
MicroStrategy's strategy of investing in bitcoins shows positive results. As of November 17, the company's Bitcoin Yield stood at 41.8% year-to-date, reflecting an increase in assets and a balanced process of share dilution.
