MicroStrategy Bitcoin Bet Yields Double-Digit Returns Amid Market Uncertainty

While other cryptocurrencies fluctuate and regulatory scrutiny intensifies, MicroStrategy, the business intelligence firm led by Bitcoin evangelist Michael Saylor, remains steadfast in its conviction. The firm announced Friday the acquisition of another 18,300 Bitcoins worth approximately $1.11 billion — further solidifying its position as the largest publicly traded corporate holder of the digital asset.

In its Form 8-K filing with the United States Securities and Exchange Commission (SEC), MicroStrategy said that the purchase was worth $1.11 billion for an average price of $60,408 per Bitcoin, including expenses and fees. The company has been consistently expanding its Bitcoin holdings since its first purchase in Aug.11, 2020.

MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U
— Michael Saylor⚡️ (@saylor) September 13, 2024

With this latest acquisition, the company’s total Bitcoin holdings now stands at approximately 244,800 BTC, currently valued at around $14.14 billion. It also noted in its filing that the average purchase price for its Bitcoin acquisitions since August 2020 stands at $38,585 per BTC, with a total investment of around $9.45 billion. “We continue to believe that Bitcoin will be a significant driver of value for MicroStrategy,” the company has previously stated in its communications.

The funds used for the recent Bitcoin purchase were raised through the sale of MicroStrategy’s company shares. In Aug. 1, MicroStrategy entered into a sales agreement with several financial institutions, allowing it to sell “an aggregate of 8,048,449 shares,” as noted in the SEC filing. By Sept. 12, it had reportedly raised approximately $1.11 billion.

The capital raised was directly allocated to expanding the company’s Bitcoin holdings. “The proceeds from the sale of our Class A common stock under the Sales Agreement will be used for general corporate purposes, including the acquisition of Bitcoin,” the company underlined in its filing. This approach aligns with its ongoing strategy of using equity sales to fund its Bitcoin investments.

As of Aug. 10, MicroStrategy holds 226,500 BTC, worth $13.77 billion at the time. These were acquired at an average price of $37,000 per BTC. The company’s strategy has led to substantial unrealized profits, with Bitcoin’s price hitting approximately $60,500 during that period, or roughly $5.39 billion in unrealized gains. Saylor has remained committed to this strategy, often stating, “Our focus is on the long-term appreciation of Bitcoin.”

MicroStrategy’s stock (MSTR) has grown significantly — by about 1,000% since August 2020. The company noted that this increase is over “16.25 times the returns of the SPX over the same period.” Despite varying opinions from financial analysts, the company remains focused on its Bitcoin push, aiming to maximize returns through its aggressive accumulation approach.

As of 11:30 a.m. ET on Sept. 13, Bitcoin (BTC) traded at $59,452.46, reflecting a 3.80% increase in the past 24 hours. The token’s market cap is $1.2 trillion, and its circulating supply stands at 19,753,590 BTC. Over the past week, Bitcoin experienced a 9.60% surge, although the price has been volatile.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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