MicroStrategy buys another 21,550 Bitcoin for $2.1 billion, boosting holdings to $42B

Key Takeaways

• MicroStrategy acquired 21,550 Bitcoin for $2.1 billion, raising its total holdings to 423,650 BTC.
• The company has raised capital through share sales to fund its ongoing Bitcoin purchases.

MicroStrategy, the world’s largest corporate Bitcoin holder, said Monday it had added 21,550 BTC worth around $2.1 billion to its portfolio. The acquisition, made between Dec. 2 and Dec. 8, brings its total Bitcoin stash to 423,650 BTC, valued at approximately $42 billion at current market prices.

The latest move also marks the company’s fifth consecutive week of Bitcoin purchases, following last week’s acquisition of 15,400 BTC for $1.5 billion at an average price of $95,976 per coin.

According to an SEC filing reported on Monday, MicroStrategy used proceeds from a 5.4 million stock sale to fund its Bitcoin purchase. The company still has over $9 billion worth of shares remaining available for sale as part of its planned $42 billion capital raise over the next three years, split between a $21 billion equity offering and $21 billion in fixed-income securities.

Michael Saylor, the company’s co-founder and executive chairman, noted that the total holdings were acquired at an average price of $60,324 per BTC, representing a total cost of around $25.6 billion, including fees and expenses.

The firm’s Bitcoin Yield, which measures the percentage change in Bitcoin holdings relative to diluted shares, reached 68.7% year-to-date as of Dec. 9.

This is a developing story.