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MicroStrategy — the market intelligence firm known for siphoning billions of dollars into Bitcoin (BTC) for its coffers — just acquired another $2.1 billion worth of the world’s first cryptocurrency.
A recent Securities and Exchange Commission (SEC) filing by MicroStrategy reveals that the firm acquired about 21,550 BTC for approximately $2.1 billion between Dec. 2 and Dec. 8. The average price is about $98,783 per Bitcoin, including fees and expenses. The filing reads:
“The Bitcoin purchases were made using proceeds from the issuance and sale of shares under the sales agreement.”
The details
MicroStrategy is a publicly traded business intelligence company founded in 1989 that pivoted to acquire as much Bitcoin as possible in 2020. The company now holds well over 1% of all Bitcoin that will ever exist, with institutional interest in MicroStrategy being an interest in a regulatory-friendly Bitcoin investment.
At the time of writing, the firm holds about 423,650 BTC in its coffers — worth over $40.3 billion. The average price at which those assets were acquired is $60,324 per BTC, 57.5% lower than the current price of over $95,000.
Despite Bitcoin’s price rallying ever since Republican candidate Donald Trump won the elections, MicroStrategy’s stock has had a less than stellar performance recently. Right as Bitcoin was approaching $100,000 for the first time in late November, MicroStrategy shares took a major fall.
At the time,Citron Research explained that it recommended investing in MicroStrategy with a $700 target four years ago. According to the company, “MicroStrategy was the ultimate way to invest in Bitcoin.” Now, things were different:
“Now, with Bitcoin investing easier than ever […], [MicroStrategy]’s volume has completely detached from BTC fundamentals. While Citron remains bullish on Bitcoin, we’ve hedged with a short [MicroStrategy] position.”
Still, MicroStrategy is seeing its imitators grow their ranks. Last month, Metaplanet — a Tokyo-listed imitator — announced the issuance of 1.75 billion yen ($11.3 million) of one-year ordinary bonds to buy more Bitcoin.
MicroStrategy chairman Michael Saylor recently announced that he will soon pitch investing in Bitcoin to the Microsoft board as well. He said that an activist arranged the meeting:
“The activist that put that proposal together contacted me to present to the board, and I agreed to provide a three-minute presentation — that’s all you’re allowed — and I’m going to present it to the board of directors.”
