MicroStrategy, a business intelligence firm, has significantly expanded its Bitcoin portfolio, acquiring 55,000 BTC for $5.4 billion between November 18 and 24. This latest purchase elevates its total holdings to 386,700 BTC, acquired at a cumulative cost of $21.9 billion. The average price per coin for this recent acquisition was $97,862, reflecting the firm’s confidence in Bitcoin’s growth amid bullish institutional sentiment.
Funding via Equity and Debt Offerings
Source: Michael Saylor
The acquisition was financed through a $2.97 billion private offering of 0% convertible senior notes due 2029 and $2.46 billion raised through an at-the-market (ATM) equity program. MicroStrategy reported $12.8 billion in remaining capacity under its ATM program, hinting at the possibility of future acquisitions.
BTC Yield and Shareholder Value
MicroStrategy introduced a proprietary metric, “Bitcoin Yield,” to measure the growth in BTC holdings relative to diluted shares. As of November 24, the BTC Yield stood at 59.3%, up from 35.2% at the end of Q3. This underlines the firm’s strategy to maximise shareholder value by leveraging Bitcoin as a primary financial asset.
Semler Scientific Joins the BTC Race
MicroStrategy Form 8-K table detailing its total BTC holdings since December 2023 up to Nov. 24. Source: MicroStrategy
Healthcare company Semler Scientific followed suit, purchasing 297 BTC for $29.1 million between November 18 and 22, increasing its total holdings to 1,570 BTC. With an average purchase price of $75,039 per BTC, Semler has doubled its ATM equity program to $100 million, signalling its commitment to Bitcoin as a treasury asset.
MicroStrategy’s aggressive Bitcoin acquisition strategy underscores the growing institutional adoption of the cryptocurrency. The firm’s confidence in further price growth aligns with optimism around regulatory clarity and pro-crypto policies under the upcoming US administration. With other firms like Semler joining the fray, Bitcoin continues to solidify its status as a strategic treasury asset.
