MicroStrategy continues to expand its Bitcoin holdings by acquiring 51,780 BTC worth $4.6 billion between November 11 and November 17, 2024. This marks one of the largest weekly Bitcoin purchases ever.
Details of the Latest Acquisition
According to MicroStrategy, the 51,780 BTC were purchased at an average price of $88,627 per Bitcoin, including fees and expenses. The purchase was funded through the issuance and sale of MicroStrategy’s Class A common stock under an At-the-Market (ATM) Sales Agreement.
Breaking Down the ATM Sales Agreement
MicroStrategy's ability to fund such large purchases stems from its ATM Sales Agreement, signed on October 30, 2024. This agreement allows the company to issue and sell shares worth up to $21 billion through multiple sales agents, including major players like TD Securities and Barclays Capital. Between November 11 and November 17, MicroStrategy issued 13.6 million shares, generating $4.6 billion in net proceeds. Even after this massive sale, the company still has $15.3 billion in remaining capacity under the agreement, suggesting that future Bitcoin purchases could follow. The latest acquisition follows another substantial purchase announced just a week prior. Between October 31 and November 10, 2024, MicroStrategy acquired 27,200 bitcoins for $2.03 billion, at an average price of $74,463 per Bitcoin.
MicroStrategy’s Bitcoin Bet
MicroStrategy's massive Bitcoin holdings coincide with its long-term vision. Michael Saylor, the company's founder and executive chairman, has been an outspoken advocate of Bitcoin as a store of value and inflation hedge. This latest step strengthens MicroStrategy's position as the largest corporate holder of Bitcoin by a significant margin. The company’s holdings now account for roughly 1.5% of Bitcoin's total supply. MicroStrategy's purchase comes at a time when Bitcoin is trading near its all-time high. Following the news of acquisition on Nov. 11, Bitcoin's price surged over $93,000, marking its highest level since November 2021.
In conclusion, MicroStrategy's significant investments in Bitcoin highlight its strategy to preserve value amidst economic uncertainty. These purchases have fortified the company's market position and influenced the cryptocurrency's price.
