Key Points
- Per an 8-K filing with the SEC, MicroStrategy acquired approximately 55,500 bitcoins for $5.4 billion at an average price of $97,862 per bitcoin between November 18-24, 2024, using proceeds from convertible notes and stock sales.
- According to the filing, the company’s total bitcoin holdings have now reached 386,700 BTC, acquired at an aggregate purchase price of $21.9 billion with an average purchase price of $56,761 per bitcoin.
Massive Capital Raise Fuels Bitcoin Acquisition
According to the Form 8-K filed on November 25, 2024, MicroStrategy has completed a significant capital raise through two channels to fund its latest bitcoin purchase. The company raised approximately $2.97 billion through a 0% convertible senior notes offering due 2029, which included a 55% conversion premium. Additionally, the company generated approximately $2.46 billion through the sale of 5.6 million shares of its class A common stock through its ATM (at-the-market) offering program.
Record-Breaking Bitcoin Purchase
In what marks one of the largest corporate bitcoin purchases to date, MicroStrategy deployed approximately $5.4 billion to acquire 55,500 bitcoins over a single week. The purchase was executed at an average price of $97,862 per bitcoin, reflecting the cryptocurrency’s recent price surge. This aggressive accumulation strategy has significantly expanded MicroStrategy’s bitcoin holdings, solidifying its position as the largest corporate holder of bitcoin.
Strong Performance Metrics
The SEC filing reveals that MicroStrategy’s bitcoin strategy appears to be yielding positive results, as evidenced by their BTC Yield key performance indicator (KPI). The company reported a BTC Yield of 35.2% from October 1 to November 24, 2024, and an impressive 59.3% yield from January 1 to November 24, 2024. The BTC Yield measures the percentage change in the ratio between the company’s bitcoin holdings and its Assumed Diluted Shares Outstanding, which the company uses to assess whether its bitcoin acquisition strategy is creating value for shareholders.
