MicroStrategy Increases Bitcoin Holdings With $2 Billion Purchase

MicroStrategy, a publicly traded company with the largest Bitcoin holdings, has acquired an additional 27,200 Bitcoin.

MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd
— Michael Saylor⚡️ (@saylor) November 11, 2024

The company announced that this purchase, made between October 31st and November 10th, 2024, cost approximately $2.03 billion, averaging about $74,463 per Bitcoin.

Following this acquisition, MicroStrategy's total Bitcoin holdings have increased to 279,420 Bitcoin, with an aggregate purchase cost of $11.9 billion at an average price of $42,692 per Bitcoin.

Capital Financing via Share Issuance

MicroStrategy financed the recent acquisition through its equity offering program.

The company reported selling approximately 7.85 million shares, raising $2.03 billion in net proceeds.

This capital was raised under a sales agreement initiated in August 2024, which was expanded in October to allow further share issuances.

The funds from these sales were used to acquire the newly purchased Bitcoin.

BTC Yield Metric and Strategic Focus

MicroStrategy introduced a performance metric called "BTC Yield" to track the growth in its Bitcoin holdings relative to diluted shares.

The metric shows a 7.3% yield for the fourth quarter to date and 26.4% year-to-date, reflecting how efficiently the company uses equity capital for Bitcoin acquisitions.

However, the company clarifies that this is not a traditional financial yield but a measure of its strategic impact.

Ongoing Strategy and Investor Guidance

The company continues to focus on acquiring Bitcoin to enhance its balance sheet, funded mainly through equity sales.

MicroStrategy plans to explore additional capital-raising opportunities for future purchases, emphasizing a long-term approach to value creation.

The BTC Yield metric serves as a supplementary tool for understanding this strategy but should not be seen as a measure of profitability.

MicroStrategy does not pay dividends and has no plans to start. Investors are encouraged to review its financial statements for a full understanding of its strategy and risks.