MicroStrategy Inc . (NASDAQ:MSTR), a prominent player in the cryptocurrency space, has announced the acquisition of an additional 15,350 bitcoins, expanding its holdings to roughly 439,000 bitcoins as of December 15, 2024. This latest purchase, made with an investment of approximately $1.5 billion, reflects an average cost of about $100,386 per bitcoin, including fees and expenses. The company's total investment in bitcoin now stands at around $27.1 billion, averaging a purchase price of $61,725 per bitcoin.
The acquisition was funded through the sale of MicroStrategy's class A common stock under a Sales Agreement with various financial institutions. Between December 9 and December 15, the company sold approximately 3.88 million shares, generating net proceeds of about $1.54 billion, with around $7.65 billion of shares still available for future sales under the agreement.
MicroStrategy's increased bitcoin portfolio coincides with the company's inclusion in the Nasdaq 100 index, which boosted its share price by approximately 4% in premarket trading on Monday. The company's stock also benefited from a surge in bitcoin's spot price, which reached a new peak of $106,490.
In addition to its bitcoin investments, MicroStrategy also disclosed its BTC Yield as a key performance indicator (KPI), which represents the percentage change in the ratio between the company's bitcoin holdings and its Assumed Diluted Shares Outstanding. From October 1 to December 15, 2024, the BTC Yield was 46.4%, and from January 1 to December 15, the yield reached 72.4%.
The company has emphasized that the BTC Yield KPI is utilized to assess the effectiveness of its strategy to acquire bitcoin in a way that is believed to be accretive to shareholders. However, it is not a traditional financial measure and should not be seen as an indicator of the company's operational performance or liquidity. The KPI is also not predictive of the company's stock trading price.
MicroStrategy's aggressive bitcoin acquisition strategy has made it a notable entity in the cryptocurrency market, with its holdings representing a significant portion of its investment strategy. As the company continues to leverage its equity to expand its bitcoin portfolio, it remains a closely watched barometer of corporate confidence in cryptocurrencies.
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