MicroStrategy, the publicly traded business intelligence and software company, revealed on Nov. 25 that it had significantly increased its Bitcoin holdings in a recent filing.
The company purchased approximately 55,000 Bitcoin (BTC) for a total of $5.4 billion between Nov. 18 and 24, at an average price of $97,862 per coin. This acquisition was financed through the source of funds for BTC investment: proceeds from recent equity and debt offerings.
With this latest purchase, MicroStrategy’s total Bitcoin holdings now amount to a staggering 386,700 BTC, acquired at a combined cost of $21.9 billion, averaging $56,761 per coin. This continued purchasing activity, particularly near Bitcoin’s new high approaching $100,000, suggests the company is betting on further Bitcoin appreciation, likely fueled by increasing institutional interest and optimism about potential pro-crypto legislation under President-elect Donald Trump’s administration.
Source of funds for BTC investment
MicroStrategy’s Bitcoin investment was financed through a private offering of 0% convertible senior notes due in 2029 and the company’s ongoing at-the-market (ATM) equity program. The senior notes offering, concluded on Nov. 21, raised a net total of $2.97 billion. Additionally, the company sold 5,597,849 shares under its ATM program, generating an additional $2.46 billion in net proceeds. Together, these funds provided the liquidity needed to support the company’s continued aggressive BTC acquisitions. As of Nov. 24, MicroStrategy reported a remaining $12.8 billion in capacity under the ATM program.
Not-so micro strategy
In its Form 8-K filing, MicroStrategy introduced a proprietary metric, “Bitcoin Yield,” which tracks the percentage change in the ratio of BTC holdings to diluted shares outstanding. As of Nov. 24, the company reported a BTC Yield of 59.3%, a significant increase from the 35.2% reported at the end of Q3. In simple terms, this reflects the company’s strategy of using Bitcoin as a central pillar of its financial approach, aiming to enhance shareholder value by focusing on increasing its Bitcoin holdings.
Semler Scientific follows suit, acquires more BTC
In a similar move, Semler Scientific, a healthcare company based in the US, announced the purchase of 297 BTC for $29.1 million between Nov. 18 and 22. This raised its total Bitcoin holdings to 1,570 BTC, with an average acquisition price of $75,039 per coin. Semler also expanded its ATM equity program by an additional $50 million, bringing its offering capacity to $100 million, with $50 million already raised through gross proceeds.
As of Nov. 22, Semler reported a year-to-date Bitcoin Yield of 58.4%, underscoring its strategy of using Bitcoin as a treasury asset to enhance its financial position.
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