MicroStrategy, the largest corporate bitcoin (BTC) holder, has announced updates regarding its bitcoin holdings and activities, capital market operations, and BTC Yield, a key performance indicator.
The company noted that between October 31, 2024, and November 10, 2024, it acquired roughly 27,200 bitcoins at a total cost of about $2.03 billion in cash, with an average purchase price of approximately $74,463 per bitcoin, including fees and expenses.
With the latest acquisition, the company now holds a total of 279,420 BTC, worth approximately $23 billion at current market prices.
Selling Shares to Purchase More BTC
The firm further stated that the funds for these bitcoin acquisitions were sourced from proceeds raised through the issuance and sale of shares under existing Sales Agreements.
MicroStrategy disclosed that it entered sales agreements with multiple firms on August 1 and October 30. By November 10, the company had sold around 7.8 million shares, raising approximately $2 billion.
MicroStrategy also revealed that as of November 10, 2024, the company and its subsidiaries collectively held around 279,420 bitcoins, acquired at a total cost of roughly $11.9 billion, with an average purchase price of approximately $42,692 per BTC, including all fees and expenses.
The firm noted that its BTC yield was 7.3% from October 1, 2024, to November 10, 2024, and 26.4% from January 1, 2024, to November 10, 2024.
BTC Yield is a key performance indicator (KPI) that represents the percentage change period-to-period of the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding.
Assumed Diluted Shares Outstanding represents the total of the company’s actual common stock shares at the end of each period, combined with any additional shares that would arise from the assumed conversion of all outstanding convertible notes.
According to MicroStrategy, it uses BTC Yield as a key performance indicator to evaluate the effectiveness of its bitcoin acquisition strategy, which it believes adds value for shareholders.
The KPI aims to enhance investors’ understanding of the Company’s approach to financing bitcoin purchases by issuing additional common stock or convertible instruments.
MicroStrategy’s BTC Portfolio Surpasses $20B
The recent announcement comes as MicroStrategy’s Bitcoin portfolio exceeds $20 billion, with over 100% investment return.
The data tracker indicated that the firm’s holding exceeded $20.5 billion before adding its latest BTC acquisition.
Data from BitcoinTreasuries revealed that MicroStrategy has made roughly 42 purchases, with an average acquisition cost of $39,292 per BTC.
