MicroStrategy’s $786 million Bitcoin purchase pushes stock up 3%

MicroStrategy bought nearly 12,000 BTC for $786 million, according to a June 20 filing with the U.S. Securities and Exchange Commission (SEC).

Following the news, the company’s shares rose 3% to $1,507 in premarket trading, according to Google Finance data.

Buying Bitcoin

The file states:

“With the proceeds from the offering and excess cash (as defined in our Quarterly Report on Form 10-Q for the three months ended March 31, 2024), MicroStrategy purchased approximately 11,931 bitcoins for approximately $786.0 million in cash, at an average price of approximately $65,883 per bitcoin, including fees and expenses.”

With this latest acquisition, the company’s Bitcoin holdings have increased to 226,631 BTC. These were acquired for a total purchase price of approximately $8.3 billion, which represents an average price of approximately $36,798 per BTC. Based on the current price of $65,990, the current market value of these holdings is more than $15 billion.

Notably, the company recently completed an $800 million bond offering with a 2.25% coupon and a 35% exchange premium. Since the beginning of the year, this strategy has helped the company raise over $2 billion for Bitcoin purchases.

But despite the issue of additional shares, which typically dilutes the share price, CryptoSlate Insight reported that the company’s Bitcoin value per share has increased. This increase means that each share now represents more Bitcoin value, benefiting shareholders.

MicroStrategy’s Bitcoin holdings per share have increased to 0.013163 BTC, with 17,194,000 shares outstanding and a total of 226,331 BTC held.

BTC to 1 million US dollars

Meanwhile, analysts at Bernstein have significantly raised their Bitcoin price forecasts. They predict that the flagship digital asset’s Bitcoin price will reach $1 million by 2033 and $200,000 by the end of 2025.

This optimistic forecast is based on the rising demand for the top cryptocurrency and limited supply. The analysts pointed out that the newly launched spot Bitcoin ETFs and several institutions have started to include BTC in their trust funds.

They also pointed out that the digital asset could receive approval from major wirehouses and private banking platforms before the end of the year, leading to institutional base trading strategies that would further boost its adoption.

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