MicroStrategy’s latest US$1.1 billion Bitcoin purchase is largest since 2021

MICROSTRATEGY purchased 18,300 Bitcoin for around US$1.11 billion, the largest acquisition of the digital asset by the crypto hedge-fund proxy in more than three years.

The enterprise software maker, whose corporate strategy includes buying the cryptocurrency, bought the tokens between Aug 6 and Sep 12, according to a US Securities and Exchange Commission filing on Friday (Sep 13). It is the largest amount of tokens purchased since the firm announced in February 2021 that it snapped up 19,452.

MicroStrategy now holds around 244,800 Bitcoin, valued at around US$14 billion. That is about 1 per cent of all the Bitcoin ever issued. BlackRock’s iShares Bitcoin Trust is the world’s largest Bitcoin fund at about US$20 billion. MicroStrategy has acquired its tokens at an aggregate purchase price of about US$9.45 billion and an average purchase price of about US$38,585, according to the filing. Bitcoin was little changed at around US$57,880 on Friday.

The Tysons Corners, Virgina-based firm started acquiring the cryptocurrency in 2020 as a capital allocation strategy, with co-founder and chairman Michael Saylor citing the need to hedge against inflation. While Saylor has won the admiration of Bitcoin supporters, few US public company besides Tesla and a handful of crypto-related firms have decided to hold the volatile cryptocurrency on its balance sheet.

Proceeds from the issuance and sale of common shares were used to finance the latest acquisitions. MicroStrategy conducted a 10-for-one stock split in August, saying it would make the shares more accessible to investors and employees.

The company’s shares have more than doubled this year, outperforming the roughly 40 per cent jump in the price of Bitcoin during the same period.