- MicroStrategy acquires 27,200 BTC, boosting holdings to 279,420 BTC at a $42,692 avg cost.
- Funded via $2.03B in stock sales, leveraging two major sales agreements for acquisitions.
- BTC Yield metric shows 7.3% QTD, 26.4% YTD, reflecting growth in BTC holdings vs. share dilution.
MicroStrategy Inc., as of November 10, 2024, has solidified its position as a leading corporate holder of Bitcoin (BTC) with a substantial addition to its digital assets portfolio. The company recently acquired an additional 27,200 BTC, investing approximately $2.03 billion in this purchase at an average price of $74,463 per BTC.
This acquisition brings MicroStrategy’s total holdings to 279,420 BTC, purchased at an aggregate cost of approximately $11.9 billion, averaging around $42,692 per BTC.
The BTC Yield, a metric devised by MicroStrategy, reflects the period-to-period percentage change in the ratio of the company’s bitcoin holdings to its assumed diluted shares outstanding.
This yield stands at 7.3% quarter-to-date (QTD) and 26.4% year-to-date (YTD). BTC Yield measures the performance of MicroStrategy’s strategy to increase Bitcoin holdings in a manner that is intended to be accretive for shareholders.
By considering both BTC holdings and shares outstanding, MicroStrategy aims to provide investors with insight into the company’s growth trajectory in BTC holdings relative to share dilution.
The acquisition was funded by selling class A common stock under two sales agreements executed in 2024. In August, MicroStrategy entered a $2.0 billion sales agreement with agents, including TD Securities, The Benchmark Company, and others.
On October 30, 2024, the company signed a second sales agreement with an expanded group of agents, allowing it to issue up to $21 billion in stock over time. As of November 10, 2024, the company sold 7,854,647 shares for net proceeds of $2.03 billion, effectively depleting the August sales agreement.
MicroStrategy implemented a 10-for-1 stock split on August 8, 2024, for both class A and class B common stock, retroactively adjusting share counts to reflect this split. This move impacts reported figures by reducing the value per share while increasing the total number of shares outstanding, impacting metrics such as BTC Yield.
The company utilizes “assumed diluted shares outstanding” as a measure, encompassing not only basic shares outstanding but also potential shares from convertible notes, stock options, and restricted stock units, without applying the treasury method or factoring investing conditions. This provides a comprehensive view of potential share dilution.
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