MicroStrategy sells shares, buys $177m in bitcoin
15:10, 24 August 2021
MicroStrategy announced Tuesday it had raised $177.5m in a liquidity facility with Jeffries and purchased 3,907 bitcoins, totalling roughly $177m in value. The average price paid was $45,294 per bitcoin, the company said.
The Tysons Corner, Virginia-based computer software services company announced in an 8-K filing with the Securities & Exchange Commission it had accessed an Open Market Sale Agreement with financial services company Jefferies, established 14 June with a capacity of up to $1bn, to sell 238,053 shares at a gross share price of $753.21 to fund the bitcoin purchase.
At top of the bitcoin heap
The company said it currently holds 108,992 bitcoins, totalling over $2.91bn in value at an average price of $26,769 per bitcoin. On 21 June, the company announced it had acquired 13,005 bitcoins at an average price of $37,617 to bring its total bitcoin holdings at the time to over 105,000 bitcoins.
According to The Street, "MicroStrategy also now has well over double the bitcoin than any other publicly traded company on the market," including that of Elon Musk's Tesla. In a 28 July tweet, Musk said, "We don't have that many bitcoin, but it's close."
MicroStrategy shares are trading lower Tuesday, at $704.06, versus the $717.93 opening share price.
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