MicroStrategy Increases Bitcoin Holdings to 439,000
MicroStrategy Inc. (NASDAQ:MSTR), a significant player in the cryptocurrency space, announced that it has purchased an additional 15,350 bitcoins, bringing its total bitcoin holdings to approximately 439,000 bitcoins as of December 15, 2024. This latest acquisition, made with an investment of approximately $1.5 billion, was completed at an average cost of $100,386 per bitcoin, including fees and expenses. The company's total investment in bitcoin now amounts to approximately $27.1 billion with an average purchase price of $61,725 per bitcoin.
The acquisition was financed through the sale of Class A common stock under a Sale Agreement with various financial institutions. The company generated approximately $1.54 billion in net proceeds by selling about 3.88 million shares between December 9 and December 15, and approximately $7.65 billion worth of stock remains available for future sales under the agreement.
MicroStrategy's expanding bitcoin portfolio coincided with the company's inclusion in the Nasdaq 100 index, which led to an approximately 4% increase in its stock price during pre-market trading on Monday. The company’s shares also benefited from the surge in the spot price of bitcoin, which reached a new peak of $106,490.
In addition to its bitcoin investments, the company has introduced BTC Yield, representing the percentage change in the ratio of its bitcoin assets to Outstanding Shares, as a key performance indicator (KPI). From October 1 to December 15, 2024, BTC Yield was 46.4%, while the return from January 1 to December 15 reached 72.4%.
The company emphasized that the BTC Yield KPI is used to assess the effectiveness of its bitcoin acquisition strategy in a way that is believed to be beneficial for shareholders. However, it should be noted that this is not a traditional financial metric and should not be viewed as an indicator of the company’s operational performance or liquidity. The KPI is also not a predictor of the company's stock trading price.
MicroStrategy's aggressive bitcoin acquisition strategy has made it a prominent entity in the cryptocurrency market, representing a significant portion of the company's asset investment strategy. As the company continues to utilize its equity to expand its bitcoin portfolio, it remains a closely monitored barometer of institutional confidence in cryptocurrencies.