MicroStrategy, a major business intelligence and Bitcoin investment firm, has announced a new acquisition of 21,550 BTC. The purchase, made between December 2 and December 8, 2024, totaled approximately $2.1 billion in cash, with an average cost of $98,783 per BTC, inclusive of fees and expenses. These funds were raised through the sale of 5,418,449 shares of its Class A common stock, generating net proceeds of approximately $2.13 billion.
As of December 8, 2024, MicroStrategy and its subsidiaries hold 423,650 BTC acquired for a total cost of $25.6 billion, averaging $60,324 per BTC.
MicroStrategy reported a Quarter-to-Date (QTD) BTC Yield of 43.2% and a Year-to-Date (YTD) BTC Yield of 68.7% as of December 8, 2024.
BTC Yield is a key performance indicator (KPI) used by the company to assess the accretive impact of Bitcoin acquisitions relative to its Assumed Diluted Shares Outstanding.
This metric measures the percentage change in the ratio of Bitcoin holdings to the company’s outstanding shares, considering stock splits, convertible notes, and equity awards.
Sales Agreement Details
The acquisition was facilitated through a sales agreement established in October 2024, allowing MicroStrategy to issue and sell shares with an aggregate offering price of up to $21 billion.
Following the recent transactions, $9.19 billion worth of shares remain available for issuance under this agreement.
MicroStrategy’s BTC Yield metric provides insight into the alignment of its Bitcoin acquisition strategy with shareholder interests but has notable limitations. It does not account for debt obligations, market conditions affecting share prices, or other factors influencing Bitcoin acquisition costs. Additionally, BTC Yield is not a measure of the company’s operational or financial performance.
The company has reiterated that investors should prioritize its financial statements and SEC filings for a comprehensive understanding of its financial position and strategy.
