Breaking MicroStrategy Sells Its Shares to Purchase $1.1 Billion Worth of Bitcoin (BTC)

2 mins
Updated by Harsh Notariya
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In Brief

  • MicroStrategy converts $1.1 billion worth of shares into 18,300 BTC, boosting total holdings to 244,800.
  • The company’s total Bitcoin investment nears $9.45 billion, with an average cost of $38,585 per BTC.
  • Despite share price dropping 20%, MicroStrategy remains confident in Bitcoin as a long-term asset.
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MicroStrategy has made a remarkable financial maneuver by converting $1.1 billion worth of its shares into 18,300 Bitcoin (BTC). The latest Form 8-K filings with the U.S. Securities and Exchange Commission (SEC) confirmed this purchase.

It took place between August 6, 2024, and September 12, 2024.

MicroStrategy Inject Billions Into Acquiring Bitcoin

Consequently, MicroStrategy’s total Bitcoin holdings have increased to about 244,800, acquired at an average price of $38,585 per Bitcoin.

Following a strategic plan, the company announced on August 1 a Sales Agreement with prominent firms such as TD Securities (USA) LLC and The Benchmark Company, LLC.

This agreement allowed MicroStrategy to issue shares of its class A common stock, which could raise up to $2.0 billion.

“On September 13, 2024, the Company announced that, as of September 12, 2024, the Company had sold an aggregate of 8,048,449 Shares under the Sales Agreement for aggregate net proceeds to the Company (less sales commissions) of approximately $1.11 billion,” Form 8-K filing mentioned.

That being said, since August 1, the MicroStrategy share price is down by roughly 20%.

Read more: Who Owns the Most Bitcoin in 2024?

MicroStrategy (MSTR) Price Performance
MicroStrategy (MSTR) Price Performance. Source: TradingView

During this acquisition phase, MicroStrategy purchased Bitcoin at an average cost of $60,400 each. This acquisition reflects the company’s confidence in Bitcoin as a valuable asset for long-term investment. Furthermore, this strategy enhances the company’s investment portfolio and establishes MicroStrategy as a formidable entity in the crypto industry.

To date, the company’s total investment in Bitcoin is nearly $9.45 billion. MicroStrategy’s assertive accumulation of Bitcoin highlights its strategic initiative to leverage the growing validation of cryptocurrencies as a stable financial asset class.

This recent development is pivotal, indicating a trend where large corporations are progressively incorporating digital assets into their fiscal strategies. This also includes the Japanese firm Metaplanet, which is following MicroStrategy’s footsteps.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Indeed, MicroStrategy is pioneering a shift in corporate investment tactics, potentially influencing how other companies manage their investment portfolios in the future.

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Harsh Notariya
Harsh Notariya is an Editorial Standards Lead at BeInCrypto, who also writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created...
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