As Cointelegraph reported, MicroStrategy’s $1.11 billion Bitcoin purchase was funded through a sales agreement for the sale of more than 8 million shares of the company’s stock.

MicroStrategy, a publicly traded business intelligence and software company, has announced that it acquired approximately 18,300 Bitcoins between August 6 and September 12.

The company’s Form 8-K filing with the U.S. Securities and Exchange Commission shows the purchase was valued at $1.11 billion, with an average purchase price of $60,408 per bitcoin, including fees and expenses.

The company, led by CEO Michael Saylor, has continued to expand its Bitcoin holdings over the past four years, having done so since its initial purchase on August 11, 2020.

Bitcoin Holdings Grow The company’s latest acquisition increases its Bitcoin holdings to approximately 244,800 Bitcoins, currently valued at approximately $14.14 billion.

Since August 2020, MicroStrategy's average Bitcoin purchase price has been $38,585 per Bitcoin, with a cumulative investment of approximately $9.45 billion.

MicroStrategy’s aggressive strategy has sparked both debate and praise from financial analysts over the years, but the company has not slowed down its bitcoin acquisitions.

Source of funds for the purchase of Bitcoin The funds used to purchase these 18,300 Bitcoins were raised through the sale of company shares, a process supported by sales agreements signed on August 1 with several financial institutions.

MicroStrategy raised about $1.11 billion through "an aggregate of 8,048,449 shares sold pursuant to the sales agreement" as of Sept. 12, according to SEC filings.

The funds raised from the sale of these more than 8 million shares were used directly to expand the company's Bitcoin holdings and increase the size of its investment portfolio.

MicroStrategy's Investment Returns As of August 10, MicroStrategy held 226,500 bitcoins worth $13.77 billion, with an average purchase price of $37,000 per bitcoin.

At the time, Bitcoin was trading at around $60,500, and MicroStrategy had $5.39 billion in unrealized profits. It has effectively outperformed the S&P 500 since August 2020.

MicroStrategy's stock value has increased by approximately 1,000% since August 2020, which is equivalent to more than 16.25 times the return of the SPX during the same period.