(Bloomberg) — MicroStrategy Inc. bought a record $4.6 billion worth of Bitcoin, making good on plans announced last month to tap the capital markets to accelerate purchases of the cryptocurrency.
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The enterprise software maker, whose business strategy includes buying the digital assets, acquired about 51,780 Bitcoin between Nov. 11 and Nov. 17, according to a U.S. Securities and Exchange Commission filing on Monday. That follows purchases of more than 27,000 Bitcoin between October 31 and November 10, and two major acquisitions in September. The Tysons Corner, Virginia-based company now owns approximately $30 billion worth of Bitcoin.
MicroStrategy co-founder and chairman Michael Saylor decided to invest in Bitcoin in 2020 as a hedge against inflation. The company initially used cash to make the purchases, and has transitioned to using proceeds from issuing and selling shares, as well as selling convertible debt, to increase its purchasing power. On October 30, the company announced that it had hired banks to raise $42 billion through the sale of new shares and fixed income to buy more Bitcoin.
MicroStrategy used its so-called at-the-market program to sell 13.6 million shares on the market in the week ending Nov. 17, the filing showed. The sales are part of a record $21 billion program that will allow the company’s bankers to create shares to sell on the market. Last week’s returns would alone represent the fourth-largest deal on the market, a signal of rampant demand for shares, according to data compiled by Bloomberg.
The company is now the largest institutional holder of Bitcoin, with 331,200 Bitcoins purchased at a total price of approximately $16.5 billion – well below current value.
Investors agree with the strategy. The company’s stock price is up more than 400% this year, making it the second-best performer among major stocks tracked by Bloomberg, behind Applovin Corp.
–With help from Tom Contiliano.
(Adds at-the-market program in fourth paragraph.)
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