MicroStrategy Inc. has made a record-breaking purchase of Bitcoin, acquiring $4.6 billion worth of the cryptocurrency as part of its strategy to expand its holdings. Between November 11 and November 17, the enterprise software company bought approximately 51,780 Bitcoin, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday. This follows earlier purchases of more than 27,000 Bitcoin from October 31 to November 10, and two significant acquisitions in September. With these latest purchases, the Virginia-based company now holds around $30 billion in Bitcoin.
The company is also taking steps to raise additional capital to continue its Bitcoin buying spree. On Monday, MicroStrategy announced plans to offer $1.75 billion in convertible senior notes, due in 2029. The proceeds from the offering will be used, in part, to fund further Bitcoin acquisitions.
MicroStrategy, led by co-founder and Chairman Michael Saylor, began investing in Bitcoin in 2020 as a hedge against inflation. Initially, the company funded its Bitcoin purchases with cash. However, it has since shifted to raising capital through the issuance of stock and convertible debt, allowing it to scale up its acquisitions. On October 30, the company revealed plans to raise up to $42 billion through a combination of new stock and debt sales for the purpose of buying even more Bitcoin.
In the week ending November 17, MicroStrategy also utilized its “at-the-market” program, selling 13.6 million shares into the market, which forms part of a larger $21 billion share sale program. This transaction, one of the largest of its kind, signals strong demand for MicroStrategy’s stock, according to data compiled by Bloomberg.
With its total holdings now at 331,200 Bitcoin, purchased at an aggregate cost of about $16.5 billion, MicroStrategy is the largest institutional holder of the digital asset. Notably, the company’s Bitcoin purchases are now valued far above their original cost.
The strategy has proven successful with investors, as MicroStrategy’s stock has surged more than 400% year-to-date, making it the second-best performing major stock tracked by Bloomberg, trailing only Applovin Corp.
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