MicroStrategy Acquires 52,000 Bitcoins

Investing.com – MicroStrategy Incorporated (NASDAQ: MSTR) has added 52,000 bitcoins to its portfolio, worth $4.6 billion, marking the largest purchase in the company's history, according to a regulatory filing disclosed on Monday.

MicroStrategy's shares surged 9%, reaching $371, with the stock having quintupled in value so far this year.

Bitcoin has been rallying since Donald Trump’s election as U.S. president, driven by expectations of regulatory easing, and breached the $90,000 level last week, reaching an all-time high.

The latest purchase occurred between November 11 and November 17, 2024, where 51,780 bitcoins were bought at a price of about $88,627 per bitcoin. This acquisition brought MicroStrategy's total bitcoin holdings to over 331,000 bitcoins, valued at $16.5 billion.

To fund this acquisition, MicroStrategy raised $4.6 billion in net proceeds through the sale of 13.6 million shares under a sales agreement finalized in October 2024, as disclosed in a SEC filing.

The agreement allows the company to issue shares worth up to $21 billion through a group of financial agents, including TD Securities and Barclays.

As of mid-November, MicroStrategy's total bitcoin holdings were acquired at an average price of $49,874 per bitcoin—substantially lower than the recent purchase price.

Since 2020, MicroStrategy has been acquiring and holding bitcoin as a strategic move, especially as revenue from its software business slowed. It is now the largest corporate holder of the cryptocurrency.

A Bernstein note published on Monday suggested that Bitcoin could reach $100,000 imminently, with a target value of $200,000 by 2025.