(Bloomberg) — MicroStrategy Inc. has purchased a record $4.6 billion in Bitcoin, fulfilling a plan announced last month to use capital markets to accelerate purchases of cryptocurrencies.
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The enterprise software maker has included the purchase of digital assets in its corporate strategy, acquiring approximately 51,780 Bitcoin between Nov. 11 and Nov. 17, according to a filing with the U.S. Securities and Exchange Commission on Monday. That's what it means. This comes after more than 27,000 Bitcoins were purchased between October 31st and November 10th, and two large acquisitions were made in September. The company, based in Tysons Corner, Virginia, currently holds about $30 billion in Bitcoin.
Michael Saylor, co-founder and chairman of MicroStrategy, decided to invest in Bitcoin in 2020 as a hedge against inflation. The company initially used cash for acquisitions, but shifted to using proceeds from the issuance and sale of stock and the sale of convertible debt to leverage purchasing power. The company announced on October 30 that it had hired banks to raise $42 billion through the sale of new stocks and bonds to buy more Bitcoin.
MicroStrategy sold 13.6 million shares to the market in the week ending Nov. 17 using its so-called at-the-market program, according to filings. The sale is part of a record $21 billion program that allows the company's bankers to create shares to sell into the market. The money raised in the past week alone is the fourth-largest market transaction and shows growing demand for stocks, according to data compiled by Bloomberg.
The company is currently the largest institutional holder of Bitcoin, having purchased 331,200 Bitcoins for a total of approximately $16.5 billion, significantly below its current value.
Investors are buying into this strategy. The company's stock has risen more than 400% since the beginning of the year, making it the second-best performer among major stocks after Bloomberg, behind Applovin Corp.
–With assistance from Tom Contiliano.
(Adds over-the-counter program in fourth paragraph.)
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