Significant Bitcoin Acquisition and Strong BTC Yield Mark Strategic Moves
On December 23, 2024, MicroStrategy (MSTR) provided updates on its share sales and bitcoin holdings, reflecting its continued strategic focus on leveraging capital markets to expand cryptocurrency investments.
Share Sale Raises $561 Million
Between December 16 and December 22, 2024, MicroStrategy sold approximately 1.32 million shares under its existing Sales Agreement, generating net proceeds of around $561 million after accounting for sales commissions. As of December 22, approximately $7.08 billion worth of shares remained available for issuance and sale under the agreement.
This successful capital raise highlights MicroStrategy’s ability to attract investors and efficiently utilize its equity to fund strategic initiatives.
Significant Bitcoin Acquisition at Record Prices
During the same period, MicroStrategy utilized the $561 million raised to purchase 5,262 bitcoins at an average price of $106,662 per bitcoin, inclusive of fees and expenses. This marks one of MicroStrategy’s most significant acquisitions of the digital asset to date, aligning with its aggressive accumulation strategy.
As of December 22, 2024, MicroStrategy and its subsidiaries held a total of 444,262 bitcoins. These holdings were acquired at an aggregate cost of approximately $27.7 billion, with an average purchase price of $62,257 per bitcoin, inclusive of fees and expenses.
Strong BTC Yield Highlights Strategic Success
MicroStrategy also reported its BTC Yield, a key performance indicator (KPI) that measures the percentage change in the ratio of bitcoin holdings to Assumed Diluted Shares Outstanding over specific periods.
From October 1 to December 22, 2024, MicroStrategy achieved a BTC Yield of 47.4%, while the year-to-date figure stood at an impressive 73.7%. This metric underscores MicroStrategy’s strategy of acquiring bitcoin in a manner it believes is accretive to shareholders.
BTC Yield considers both the growth in bitcoin holdings and the impact of share dilution, offering investors insight into the effectiveness of MicroStrategy’s approach to funding cryptocurrency purchases through share issuance or convertible instruments.
Positioning for Long-Term Value
MicroStrategy’s actions reflect a deliberate strategy to maximize the value of its bitcoin holdings while maintaining shareholder interests. The ability to raise substantial funds through share sales and deploy them effectively into bitcoin acquisitions highlights the company’s confidence in the digital asset’s long-term potential.
As cryptocurrency markets continue to evolve, MicroStrategy’s growing bitcoin reserves and strong BTC Yield position it as a key player in the intersection of traditional capital markets and digital assets, reinforcing its commitment to driving shareholder value through strategic investments.
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