MicroStrategy Acquires Approximately 27,200 Bitcoins for About $2 Billion in Cash

On Monday, MicroStrategy Incorporated (NASDAQ: MSTR), known for having the largest corporate Bitcoin treasury, announced that it purchased approximately 27,200 bitcoins between October 31, 2024, and November 10, 2024. This update from the company followed the surge in Bitcoin's value, which surpassed $81,000, after President-elect Donald Trump's positive stance toward digital assets.

The acquisition, executed at an average price of about $74,463 per bitcoin, including fees and expenses, cost approximately $2.03 billion in cash. The funds used for this investment were derived from the sale of the company's shares under previously established Sale Agreements.

As of November 10, 2024, MicroStrategy's total Bitcoin holdings reached approximately 279,420 bitcoins. These bitcoins were acquired at an average price of about $42,692 per bitcoin, amounting to a total purchase cost of approximately $11.9 billion.

Regarding capital market activities, on August 1, 2024, MicroStrategy entered into a Sale Agreement with various selling agents. This agreement allowed the company to sell up to $2.0 billion of Class A common stock. A subsequent Sale Agreement made on October 30, 2024, expanded the potential offering to $21 billion. By November 10, 2024, the company had sold approximately 7.85 million shares, generating around $2.03 billion in net proceeds, which were primarily used to finance Bitcoin purchases.