MicroStrategy Expands Bitcoin Holdings with $1.5 Billion Acquisition

MicroStrategy, the prominent Bitcoin development company, announced on Monday that it had purchased an additional 15,350 Bitcoin for around $1.5 billion, with each coin averaging $100,386. The purchases, which occurred between December 9 and December 15, were detailed in the company’s SEC 8-K filing.

This acquisition aligns with MicroStrategy’s bold Bitcoin accumulation strategy, increasing its total Bitcoin holdings to 439,000 BTC, valued at over $45 billion. Co-founder and executive chairman Michael Saylor revealed that the average purchase price across the company's entire Bitcoin reserve, factoring in fees and expenses, is $61,725 per Bitcoin, bringing its total investment to $27.1 billion. This means the company now controls roughly 2.1% of Bitcoin's total supply of 21 million coins.

To finance this latest acquisition, MicroStrategy sold 3.88 million shares, raising an additional $1.5 billion. The share sale is part of a broader plan to generate $42 billion through equity and fixed-income offerings to fund more Bitcoin purchases.

As of December 15, the company still has $7.65 billion in shares available for sale. This latest acquisition marks MicroStrategy’s sixth consecutive week of Bitcoin buying. In the previous week, it added 21,550 BTC for $2.1 billion at an average price of $98,783 per coin.

Over the past six weeks, MicroStrategy has spent $17.5 billion on Bitcoin, nearly 39% of its current $45 billion position. The company's aggressive strategy has contributed to its market capitalization soaring to $92 billion, with its stock now trading at a premium compared to the net asset value of its Bitcoin holdings.

In another significant development, MicroStrategy is set to join the Nasdaq 100 index on December 23, further enhancing the liquidity of its stock.