As reported by various sources, MicroStrategy (MSTR), a self-described bitcoin development company, has made significant strides in increasing its bitcoin holdings. In a recent development, the company announced that it has acquired an additional 15,350 BTC, bringing its total holdings to a staggering 439,000 BTC.
MicroStrategy’s Bitcoin Acquisition: A Breakdown
The latest acquisition was made at an average price of $100,386 per bitcoin, with a total cost of $1.5 billion. This brings the company’s overall average purchase price to $61,725 per bitcoin. The funds for this acquisition were sourced from share sales under the company’s At-the-Market (ATM) program.
Financial Implications
The addition of 15,350 BTC has significantly impacted MicroStrategy’s financials. According to the latest filing, the company now has $7.65 billion left in its ATM offering, down from the initial $9.19 billion. This reduction is a direct result of the recent acquisition.
A Multi-Week Trend
It appears that MicroStrategy has developed a consistent pattern when it comes to announcing bitcoin purchases. In the past five weeks, the company has made significant acquisitions, totaling 171,430 BTC for $15.61 billion. The current ATM offering is still part of the company’s well-known ’21/21 plan’, which aims to increase its bitcoin holdings.
Remaining Convertible Note Offerings
MicroStrategy still has a substantial amount of convertible note offerings available, with $18 billion remaining. However, only $3 billion has been utilized so far. This indicates that the company is committed to utilizing these funds to further boost its bitcoin holdings.
Recent Developments: Nasdaq 100 Inclusion and FASB Adoption
The latest news on MicroStrategy’s inclusion in the Nasdaq 100 index comes as a significant development for the company. The index’s re-shuffling will take effect on Dec. 23, marking a milestone for MicroStrategy’s growth. Additionally, 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.
Fair Value Accounting: A Game-Changer
The adoption of fair value accounting by FASB will have a significant impact on companies that hold digital assets, including MicroStrategy. This new standard allows companies to recognize both fair value gains and impairments on their bitcoin holdings in net income. In contrast, the previous rules only allowed for impairments if the asset’s value dropped below its purchase price.
Market Reaction
Following the news of MicroStrategy’s inclusion in the Nasdaq 100 index and recent bitcoin purchase, the company’s share price has surged by 4% in pre-market trading, reaching $425 a share. Meanwhile, bitcoin is trading above $104,000, having recently set an all-time high of over $106,000.
Semler Scientific Joins the Bitcoin Bandwagon
In related news, Semler Scientific (SMLR) has also acquired more bitcoin, purchasing 211 BTC for $421.5 million at an average price of $101,890 per bitcoin. As of Dec. 12, Semler Scientific holds a total of 2,084 BTC.
Semler Scientific’s ATM Offering
In addition to its recent bitcoin acquisition, Semler Scientific has filed a second prospectus supplement to its S-3 Shelf, increasing its ATM offering by an additional $50 million. This takes the company’s total offering to $150 million, demonstrating its commitment to acquiring more digital assets.
Conclusion
MicroStrategy’s latest acquisition has brought its total bitcoin holdings to 439,000 BTC, marking a significant milestone for the company. The recent inclusion in the Nasdaq 100 index and adoption of fair value accounting by FASB are expected to have a positive impact on the company’s financials. As the market continues to evolve, it will be interesting to see how MicroStrategy and other companies adapt to these changes.
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