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- It follows the selling of 13,593,865 shares of MicroStrategy stock to finance the purchases.
- The current market value of the company’s 331,200 Bitcoin is around $29.7 billion.
An 8-K filing with the Securities and Exchange Commission (SEC) on Monday revealed that business intelligence company MicroStrategy, a corporate bitcoin holder, purchased an extra 51,780 bitcoins for almost $4.6 billion, with an average price of $88,627 per bitcoin, between November 11 and November 17.
It follows the selling of 13,593,865 shares of MicroStrategy stock to finance the purchases. And it is the biggest collection of acquisitions the business has made to date. The firm is aiming to raise $42 billion in funds over the next three years. In order to fund more bitcoin acquisitions; as of November 17th, there were around $15.3 billion worth of shares available for sale. As part of the $21 billion stock offering and $21 billion in fixed income instruments that were planned.
Banking on Bitcoin Paying Off
Moreover, the current market value of the company’s 331,200 Bitcoin is around $29.7 billion. According to Michael Saylor, co-founder and executive chairman of MicroStrategy, the entire cost of purchasing all of the company’s holdings—which included fees and expenses—was around $16.5 billion, or $49,874 per bitcoin.
Following last Monday’s announcement, MicroStrategy spent over $2.03 billion for 27,200 bitcoin, or an average of $74,463 per coin (not counting fees and expenditures), according to the latest report.
Furthermore, a critical performance indicator known as “Bitcoin Yield” is used by MicroStrategy. To track the percentage change in its bitcoin holdings in relation to its diluted shares. The firm’s approach for effectively purchasing bitcoin to benefit shareholders has resulted in a 41.8% year-to-date Bitcoin Yield as of November 17th. This reflects a strong increase in holdings while balancing share dilution.
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