Software developer MicroStrategy has revealed its bullishness towards Bitcoin in its latest purchase of nearly $150million worth of the cryptocurrency. This was revealed in a regulatory filing published today, 25 September, by the US Securities and Exchange Commission (SEC).
The form 8-K stated that MicroStrategy, along with its subsidiaries, had acquired 5,445 Bitcoins for approximately $147.3m in cash during the period between 1 August 2023 and 24 September 2023.
The chunk was purchased at an average price of approximately $27,053 per Bitcoin, inclusive of all fees and expenses.
Following the latest purchase, MicroStrategy now holds an aggregate of approximately 158,245 $BTC, acquired at an aggregate purchase price of approximately $4.68bn and an average purchase price of approximately $29,582 per Bitcoin. At current prices, this is worth over $4bn.
The filing also noted that the company had issued and sold an aggregate of 403,362 MSTR shares, which is MicroStrategy’s class A common stock listed on The Nasdaq Global Select Market, to fund the purchase. This was made possible through the ‘Sales Agreement’ it got in with Cowen and Company, LLC, Canaccord Genuity LLC and Berenberg Capital Markets LLC, as sales agents.
Pursuant to this, MicroStrategy is allowed to issue and sell shares of its class A common stock par value $0.001 per share having an aggregate offering price of up to $750m from time to time through the agents. This was revealed in a filing back in August where MicroStrategy stated: “We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and working capital, and, subject to market conditions.”
The firm’s last Bitcoin purchase was done in June 2023 when it bought 12,333 $BTC for $347m, at an average purchase price of $29,668 per $BTC.
The latest purchase news did not affect Bitcoin’s price as the crypto continued to trade sideways. It was seen in the red side at press time, down by over 4% weekly. Currently, it is changing hands for $26,097, considerably down by over 60% from its November 2021 all-time high of $69,044.
The business intelligence platform had reiterated its commitment to its Bitcoin investment strategy after posting profit in Q1 2023, which was its first quarterly profit since 2020. This was largely attributed to its one-time income tax benefit of $453.2m.
It also managed to stay in profitability in the second quarter, reporting $22.2m in net income in its Q2 earnings results filing posted on 1 August this year. This was a significant feat compared to the net loss of $1.1bn in the prior-year period.
