MicroStrategy buys another $1.1 billion in BTC amid market volatility

Source: Blockchain Knight

MicroStrategy's filing with the U.S. Securities and Exchange Commission (SEC) on September 13 showed that the company acquired approximately 18,300 BTC for $1.1 billion between August 6 and September 12, at an average price of $60,408 per BTC.

According to Coinflip data, due to the current volatility, the company's latest purchase of BTC has caused a $2.2 million apparent loss.

MicroStrategy said that the funds for the acquisition were obtained through sales agreements with multiple financial institutions, while selling more than 8 million shares of the company's stock. Companies participating in the sales agreement include TD Securities, The Benchmark Company, BTIG, Canaccord Genuity, Maxim Group and SGAmericas Securities.

The funds from these sales were directly used to expand BTC holdings.

It is worth noting that the company has actively pursued this financing strategy over the past year to accumulate top digital assets.

K33 Research noted that the firm has purchased about 91,000 BTC from September 2023 to today.

“August 2020-21 was the only period in which MSTR’s BTC exposure increased higher month-on-month, reaching 105,090 BTC,” K33 added.

Meanwhile, this latest acquisition brings the total BTC held by MicroStrategy to 244,800, worth more than $14 billion at current prices.

The company’s total investment in BTC is $9.45 billion, with an average purchase price of $38,585 per BTC.

Saylortracker data shows that the company holds more than $4 billion in unrealized profits.

MicroStrategy Executive Chairman Michael Saylor reported a 4.4% return on BTC this quarter and a 17% return on BTC held year-to-date.

According to the SEC filing, this key performance indicator (KPI) helps evaluate the company’s strategy for acquiring BTC.

The BTC Yield Indicator tracks the percentage change in MicroStrategy's BTC holdings relative to diluted shares over time.

The company believes that this metric can provide deeper investor understanding of its decision to fund its BTC purchases through additional shares or convertible instruments.

Despite the latest purchase news, MicroStrategy's shares were flat in pre-market trading. However, the company's shares are up 91% year to date.