MicroStrategy Buys 15,350 More Bitcoin. Joins NASDAQ 100
MicroStrategy continues to stack Bitcoin like there’s no tomorrow.
$1.54 Billion Raised Through Share Sales
On December 16, 2024, MicroStrategy announced it had raised approximately $1.54 billion between December 9 and December 15, 2024. The funds were secured through the issuance and sale of 3,884,712 shares of Class A common stock under a Sales Agreement with prominent financial institutions, including TD Securities, Barclays Capital, and others. As of December 15, 2024, approximately $7.65 billion in shares remained available for future issuance and sale under the agreement.
Bitcoin Acquisition Update
During the same period, MicroStrategy used the proceeds from its share sales to purchase approximately 15,350 BTC for $1.5 billion in cash, at an average price of $100,386 per Bitcoin (inclusive of fees and expenses). This acquisition brings the company’s total Bitcoin holdings to:
439,000 BTC
Acquired at a total cost of $27.1 billion
Average purchase price: $61,725 per Bitcoin
BTC Yield: A Key Performance Metric
MicroStrategy highlighted its BTC Yield as a key performance indicator (KPI) to assess the success of its Bitcoin acquisition strategy. The BTC Yield measures the percentage change period-to-period in the ratio between the company’s Bitcoin holdings and its Assumed Diluted Shares Outstanding.
QTD BTC Yield (October 1 to December 15, 2024): 46.4%
YTD BTC Yield (January 1 to December 15, 2024): 72.4%
This KPI helps investors understand how MicroStrategy’s strategic use of share issuances to fund Bitcoin purchases enhances shareholder value. While BTC Yield provides valuable insights, MicroStrategy acknowledges its limitations, such as not accounting for debt and other senior liabilities.
Why It Matters
This announcement comes on the heels of MicroStrategy’s inclusion in the NASDAQ 100 last Friday, a significant milestone that underscores the company’s growing prominence in both the corporate and cryptocurrency worlds. As a member of this elite index, MicroStrategy’s bold Bitcoin strategy is now under the spotlight of global investors and institutions, further validating its pioneering approach.
MicroStrategy’s continued success in raising funds and acquiring Bitcoin reinforces its role as a leader in corporate Bitcoin adoption. By leveraging innovative financial instruments and maintaining a clear strategy, the company demonstrates how Bitcoin can be integrated into corporate treasury management. This bold approach is not only accretive to shareholders but also sets a benchmark for other institutions considering similar strategies.
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