MicroStrategy Purchases Additional 1,914 Bitcoins for Around $94.2 Million

MicroStrategy Incorporated (MicroStrategy), the largest independent publicly-traded business intelligence company, with the leading enterprise analytics platform, announced recently that during the period between December 9, 2021 and December 29, 2021, it has purchased approximately 1,914 bitcoins for approximately $94.2 million in cash, at an average price of approximately $49,229 per bitcoin, inclusive of fees and expenses.

Previously in June 2021, the company entered into an Open Market Sale AgreementSM (Sale Agreement) with Jefferies LLC, as agent, pursuant to which the it may issue and sell shares of its class A common stock, par value $0.001 per share, having an aggregate offering price of up to $1.0 billion from time to time through Jefferies. 

From December 9, 2021 and December 29, 2021, MicroStrategy had issued and sold an aggregate of 167,759 Shares under the Sale Agreement, at an average gross price per Share of approximately $565.78, for aggregate net proceeds to it (less sales commissions and expenses) of approximately $94.2 million. As of December 29, 2021, the company held approximately 124,391 bitcoins that were acquired at an aggregate purchase price of $3.75 billion and an average purchase price of approximately $30,159 per bitcoin, inclusive of fees and expenses.

The cumulative aggregate offering price of the Shares sold under the Sale Agreement as of the close of business on December 29, 2021 was approximately $1.0 billion, inclusive of fees and expenses, constituting the maximum program amount under the Sale Agreement.

In early June 2021, Fazzaco reported that MicroStrategy was going to sell $400 million ​worth of senior secured notes in a private offering to institutional buyers to borrow money for more bitcoins.