Capital Group acquires 12% stake in MicroStrategy

Capital International Investors, the Los Angeles-based unit of Capital Group, has acquired a 12.2% stake in MicroStrategy. This reported on the U.S. Securities and Exchange Commission (SEC) website.

Capital Group now holds 953,242 shares of the software analytics company, which is known for aggressive bitcoin purchases using borrowed and leveraged funds. MicroStrategy’s balance sheet shows 105,085 BTC worth $3.45 billion, according to Bitcoin Treasuries.

The total assets under management by Capital Group amount to $2.3 trillion.

The stock price under ticker MSTR reached a high on February 9 at $1,315 and has since fallen about 55% to around $588.

In August 2020, MicroStrategy invested $250 million in bitcoin. Later, the board approved the policy of increasing investments in the first cryptocurrency using cash reserves.

In December, MicroStrategy issued convertible bonds worth $650 million to finance the purchase of digital gold.

In February 2021, the software supplier also issued debt securities for more than $1 billion and again invested borrowed funds into cryptocurrency.

In March MicroStrategy purchased 328 BTC, about 205 BTC and 262 BTC. The firm invested $15 million in digital gold in April and in May. Later the company bought 229 BTC for $10 million.

On June 14, the software supplier announced a placement of senior convertible bonds for $500 million, and also announced a $1 billion raise to buy bitcoin through a secondary share issue.

On June 21, MicroStrategy acquired 13,005 BTC for about $489 million.

Subscribe to ForkLog’s channel on YouTube!