MicroStrategy Boosts Bitcoin Portfolio with Major Purchase

MicroStrategy, a key player in analytics and business intelligence, recently announced its latest Bitcoin investment move. In ten days, from February 15 to 25, 2024, the company, along with its subsidiaries, bought around 3,000 bitcoins for $155.4 million. They paid an average price of $51,813 per bitcoin, including all costs. This purchase was funded through the sale of shares and excess cash as reported in last year's annual financial report. With this purchase, MicroStrategy's total bitcoin holdings now stand at about 193,000 bitcoins, acquired for $6.09 billion. This averages out to $31,544 per bitcoin when considering all expenses. This move highlights the company's confidence in Bitcoin as a valuable long-term investment.

Additionally, MicroStrategy updated on its At-the-Market (ATM) equity offering. Initiated on November 30, 2023, this program, in collaboration with Cowen and Company, LLC, Canaccord Genuity LLC, and BTIG, LLC, allows the company to sell its class A common stock over time. As of February 25, 2024, MicroStrategy reached its goal, raising $750 million by selling about 1,272,077 shares. Since the start of 2024, it has raised $137.8 million from this program. MicroStrategy's strategy showcases its innovative approach to investment and capital management. By selling shares, it has secured additional funds to invest in bitcoin, reflecting its belief in digital currencies' potential. This bold step in amassing a significant bitcoin portfolio underlines the company's view of bitcoin as a durable asset, possibly offering better returns than traditional investments.

In essence, MicroStrategy's recent actions, from its bitcoin purchases to capital raising through share sales, reflect its dynamic and forward-looking financial strategy. The company's embrace of cryptocurrency as a key investment avenue sets an example for other corporations, indicating a growing acceptance of digital currencies as a legitimate component of a diversified investment portfolio.