MicroStrategy, a publicly traded business intelligence and software firm, reported a substantial expansion of its Bitcoin holdings in a filing on Nov. 25.
The company acquired about 55,000 Bitcoin (BTC) for $5.4 billion between Nov. 18 and 24 at an average price of $97,862 per coin. The purchase was funded through proceeds from recent equity and debt offerings, the filing said.
The latest purchase has pumped MicroStrategy’s total BTC holdings to a massive 386,700 BTC, acquired at a cumulative cost of $21.9 billion — or an average price of $56,761 per coin.
The firm’s continued buying spree close to BTC’s new high near $100,000 suggests it expects further growth in Bitcoin’s value, driven by rising institutional adoption and optimism over potential pro-crypto legislation under the incoming United States administration of President-elect Donald Trump.
Source: Michael Saylor
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Source of funds for BTC investment
MicroStrategy used funds from a private offering of 0% convertible senior notes due 2029 and its ongoing at-the-market (ATM) equity program.
The notes offering, which finished on Nov. 21, raised a net total of $2.97 billion, alongside the firm selling 5,597,849 shares under its ATM equity program to generate a further $2.46 billion in net proceeds.
These funds combined provided the liquidity to support the firm’s continued aggressive acquisition of BTC, and as of Nov. 24, MicroStrategy reported $12.8 billion in remaining capacity under the ATM program.
Related: MicroStrategy completes $3B raise to buy more Bitcoin as MSTR falls 25%
Not-so micro strategy
In its Form 8-K disclosure, MicroStrategy detailed the use of a proprietary performance metric, “Bitcoin Yield,” which measures the percentage change in the ratio of BTC holdings to assumed diluted shares outstanding.
As of Nov. 24, the company reported a BTC Yield of 59.3%, up from 35.2% at the end of the third quarter.
Put in layman’s terms, this measures the firm’s focus on maximizing shareholder value through its Bitcoin acquisitions and making BTC the primary driver of its financial strategy.
MicroStrategy Form 8-K table detailing its total BTC holdings since December 2023 up to Nov. 24. Source: MicroStrategy
Related: Is MicroStrategy a bubble? What is the risk for Bitcoin’s price?
Semler Scientific follows suit, acquires more BTC
Semler Scientific, a US-based healthcare company, said it acquired 297 BTC for $29.1 million between Nov. 18 and 22, increasing its total holdings to 1,570 BTC purchased at an average price of $75,039.
The firm expanded its ATM equity program by a further $50 million, doubling its offering capacity to $100 million, with $50 million already generated through gross proceeds.
Semler Scientific reported a YTD BTC Yield of 58.4% as of Nov. 22, highlighting its focus on using BTC as a treasury asset.
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