MicroStrategy Acquires 15,400 Bitcoin in Latest Purchase
As November concludes, MicroStrategy has accelerated its Bitcoin (BTC) acquisitions, surpassing 400,000 BTC in its portfolio.
$1.5 Billion From Stock Sale Into Bitcoin
Recently, MicroStrategy sold 3.7 million MSTR shares, generating approximately $1.5 billion, which was reinvested into Bitcoin. This marks the fourth consecutive week of purchasing Bitcoin by the company.
According to Bloomberg data, MicroStrategy has about $11.3 billion remaining in stock issuance under its at-the-market share program, part of a goal to reach $21 billion in funding through fixed-income securities by 2027.
The latest filing with the SEC indicates that the company acquired 15,400 BTC from November 25 to December 1 at an average price of about $95,976 per token. Since November 11, MicroStrategy has invested over $13.5 billion in BTC across three batches, totaling approximately $38 billion or 402,100 BTC as of now, with an average purchase price of $56,658 per coin.
Crypto Mining Firms Shift Strategies
MicroStrategy’s purchasing strategy has inspired other companies. For instance, MARA Holdings, a cryptocurrency mining firm, announced it acquired $618 million worth of Bitcoin in two months and plans a $700 million convertible senior note offering to fund further purchases. This trend is notable as crypto mining stocks have faced challenges this year, particularly after the Bitcoin reward halving in April.
Miners like MARA are now focusing on accumulating Bitcoin instead of selling it. Despite a 44% drop earlier this year, MARA’s shares have rebounded, currently up 8% year-to-date. Similarly, Riot Platforms intends to temporarily halt selling mined BTC to increase holdings after a 20% drop in share value this year, following a significant 59% decline in September.
Currently, Bitcoin is trading at $95,180, down 1.6% in the last 24 hours. The price has been consolidating between $91,000 and $98,000 over the past 10 days, failing to retest its record high of $99,540 and the $100,000 milestone.
Featured image from DALL-E, chart from TradingView.com