MicroStrategy Buys Another $2.1 Billion Worth of Bitcoin

Investopedia
10 Dec 2024

Key Takeaways

  • MicroStrategy purchased 21,550 bitcoin last week, funded by a share sale.
  • The company now holds 423,650 bitcoin, which is worth around $41.5 billion.
  • Bitcoin miner Riot Platforms also announced a $500 million convertible note offering, as more publicly-traded companies are adding bitcoin to their balance sheets.
  • MSTR was down roughly 4% in recent trading as bitcoin fell below $98,000.

MicroStrategy (MSTR) bought more bitcoin (BTCUSD) last week, for the fifth week in a row.

The company spent roughly $2.1 billion to add 21,550 bitcoins to its stash that has now grown to 423,650 BTC, and is worth close to $41.5 billion at current prices. MicroStrategy now controls over 2% of the 21 million bitcoin that will ever exist.

According to regulatory filings, the purchase was funded through a $2.13 billion share sale which is a part of MicroStrategy's $42 billion plan to purchase bitcoin by issuing shares and convertible note offerings.

The acquisition of this latest horde of bitcoin came at an average price of $98,783 per bitcoin for MicroStrategy, as bitcoin prices have rallied from below $70,000 to more than $100,000 since the re-election of Donald Trump and hopes of a more crypto-friendly administration.

Despite the newly-announced bitcoin purchase, MicroStrategy stock was down roughly 4% in recent trading Monday, as bitcoin dipped below the $98,000 level.

Many other listed companies are taking a leaf out of MicroStrategy's bitcoin playbook to add the cryptocurrency to their own books. Bitcoin miner Riot Platforms (RIOT) also unveiled a $500 million convertible bond offering Monday to buy more bitcoin. Previously, Marathon Holdings (MARA) and Semler Scientifc (SMLR) announced their intention to acquire more bitcoin.

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