MicroStrategy Increases Bitcoin Holdings with $5.4 Billion Purchase
MicroStrategy, a well-known business intelligence and software firm, has made a big move by expanding its Bitcoin holdings. In a recent filing, the company revealed that it acquired 55,000 Bitcoin for $5.4 billion between November 18 and 24. This purchase brings their total Bitcoin holdings to a whopping 386,700 BTC. The average price per coin was $97,862, and the funds for this investment came from recent equity and debt offerings.
This continued buying spree by MicroStrategy, even as Bitcoin approaches new highs near $100,000, indicates their confidence in the future growth of Bitcoin’s value. This optimism is fueled by increasing institutional adoption and positive expectations for potential pro-crypto legislation under the upcoming United States administration of President-elect Donald Trump.
To fund this significant investment, MicroStrategy utilized funds from a private offering of 0% convertible senior notes due in 2029 and their ongoing at-the-market (ATM) equity program. The notes offering, which closed on November 21, raised a net total of $2.97 billion. Additionally, the firm sold over 5.5 million shares under its ATM equity program, generating an extra $2.46 billion in net proceeds.
In a recent disclosure, MicroStrategy introduced a new metric called “Bitcoin Yield,” which tracks the percentage change in the ratio of BTC holdings to assumed diluted shares outstanding. This metric currently stands at 59.3%, up from 35.2% at the end of the third quarter. Essentially, this metric reflects the company’s focus on maximizing shareholder value through its Bitcoin acquisitions and making BTC a key element of its financial strategy.
Meanwhile, Semler Scientific, a US-based healthcare company, also joined the trend of acquiring Bitcoin. They purchased 297 BTC for $29.1 million between November 18 and 22, bringing their total holdings to 1,570 BTC. Their average purchase price was $75,039. To support this move, Semler Scientific doubled its ATM equity program capacity to $100 million and has already generated $50 million in gross proceeds.
Both MicroStrategy and Semler Scientific’s actions indicate a growing interest in Bitcoin as a valuable asset with the potential for significant growth. This aligns with the broader trend of increasing institutional adoption and positive sentiment towards cryptocurrencies. It will be interesting to see how these investments play out in the evolving landscape of digital assets.
