Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR) and Semler Scientific (SMLR).
Self-described bitcoin (BTC) development company MicroStrategy (MSTR) has increased its bitcoin holdings to a total of 439,000 BTC following its latest purchase of 15,350 BTC with the acquisition finishing on Dec. 15.
MicroStrategy disclosed that the 15,350 BTC purchase came to a total of $1.5 billion for an average price of $100,386 per bitcoin. This brings the company’s total holdings to 439,000 BTC worth $45.6 billion at current market prices. The company’s overall average purchase price is $61,725 per bitcoin.
The latest acquisition purchases was funded through share sales under the company’s at-the-market (ATM) program. Before the announcement, MicroStrategy had $9.19 billion left of the ATM offering. Following the announcement, the company now has $7.65 billion left, according to the latest filing.
Once again, Executive Chairman, Michael Saylor teased the Monday announcement with a Sunday post.
This is now a multi week trend that MicroStrategy has announced a bitcoin purchase on a Monday before the U.S. market opens. In the previous five weeks MicroStrategy has purchased 171,430 BTC for $15.61 billion, according to an X post, by @LuckyXBT__. This current ATM offering is still part of MicroStrategy’s well-known “21/21 plan”. While, the company still has $18 billion left of convertible note offerings, of which only $3 billion has been used so far, according to LuckyXBT.
This announcement follows Friday’s news of MicroStrategy entering the Nasdaq 100, with the index’s re-shuffling going into effect on Dec. 23.
In addition, the Financial Accounting Standards Board (FASB) has officially adopted fair value accounting for bitcoin and other digital assets for fiscal years after Dec. 15 2024, which passed in 2023.
This means that digital assets will be able to account for using fair value measurement, which allows companies to recognize both fair value gains and impairments on their bitcoin holdings in net income. Under the previous rules, companies could only record impairments if that asset’s value dropped below its purchase price, but they could not record any gains seen if the asset increased above the purchase price.
Following the news of both the Nasdaq 100 inclusion and recent bitcoin purchase, MicroStrategy’s share price is up 4% in pre-market trading at $425 a share. While, bitcoin is trading over $104,000, after recently setting an all-time high over $106,000.
Semler Scientific (SMLR) also acquired more bitcoin, 211 BTC for $421.5 million at $101,890 per bitcoin. As of Dec. 12, Semler Scientific holds 2,084 BTC. In addition, Semler Scientific filed a second prospectus supplement to its S-3 Shelf, increasing its ATM offering by a further $50 million, taking the total offering to $150 million.
