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MicroStrategy buys 15,400 bitcoins using share sale proceeds

Published 02/12/2024, 13:34
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On Monday, MicroStrategy Incorporated disclosed it has acquired about 15,400 bitcoins for roughly $1.5 billion in cash, averaging a purchase price of around $95,976 per bitcoin, including fees and expenses. This acquisition was funded through the proceeds from the sale of class A common stock under a previously established Sales Agreement.

Between November 25, 2024, and December 1, 2024, the company sold approximately 3.7 million shares, generating net proceeds of about $1.48 billion, after accounting for sales commissions. This sale is part of a larger strategy under the Sales Agreement with various financial institutions, which allows for the issuance and sale of up to $21 billion in shares.

As of December 1, 2024, MicroStrategy's total bitcoin holdings amounted to roughly 402,100 bitcoins, acquired at an aggregate cost of approximately $23.4 billion, translating to an average price of $58,263 per bitcoin, inclusive of associated fees and expenses.

The Sales Agreement, initiated on October 30, 2024, with TD Securities (USA) LLC and other sales agents, has so far facilitated the sale of shares that leaves the company with around $11.3 billion worth of shares still available for future transactions.

MicroStrategy's recent activities underscore its ongoing commitment to investing in bitcoin, as it leverages its share issuance capability to expand its cryptocurrency portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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