Originally published on: November 25, 2024
MicroStrategy, a well-known business intelligence and software company, recently made headlines with a significant increase in its Bitcoin holdings. According to a filing made on Nov. 25, the company acquired a whopping 55,000 Bitcoin (BTC) for $5.4 billion between Nov. 18 and 24, with an average price of $97,862 per coin. This purchase was made possible through the proceeds from recent equity and debt offerings.
With this latest acquisition, MicroStrategy’s total Bitcoin holdings now stand at an impressive 386,700 BTC, acquired at a cumulative cost of $21.9 billion, at an average price of $56,761 per coin.
The company’s continued interest in acquiring more Bitcoin, especially near BTC’s recent high of nearly $100,000, suggests a strong belief in the future growth potential of the cryptocurrency. This optimism is fueled by increasing institutional adoption and positive sentiments about potential pro-crypto legislation under the incoming United States administration of President-elect Donald Trump.
MicroStrategy leveraged a private offering of 0% convertible senior notes due 2029 as well as its at-the-market (ATM) equity program to fund this massive Bitcoin purchase. The notes offering raised a net total of $2.97 billion, with additional proceeds of $2.46 billion generated through the sale of shares under the ATM equity program.
Furthermore, the company disclosed a proprietary performance metric called “Bitcoin Yield,” which measures the percentage change in the ratio of BTC holdings to assumed diluted shares outstanding. This metric underscores MicroStrategy’s strategic focus on maximizing shareholder value through Bitcoin acquisitions.
In a similar move, US-based healthcare company Semler Scientific also increased its Bitcoin holdings, acquiring 297 BTC for $29.1 million between Nov. 18 and 22. This brought their total holdings to 1,570 BTC, purchased at an average price of $75,039. In line with this, Semler Scientific expanded its ATM equity program by $50 million to further leverage Bitcoin as a treasury asset.
As the crypto industry continues to evolve, companies like MicroStrategy and Semler Scientific are positioning themselves strategically to capitalize on the potential growth opportunities that Bitcoin offers. Stay tuned for more updates on the latest crypto trends and insights.
