Highlights:
- MicroStrategy buys more bitcoin, spending $2B and raising its holdings to 279,420 BTC.
- Bitcoin price hits $82K, increasing the value of MicroStrategy’s assets and supporting its growth plan.
- BTC Yield reaches 26.4% YTD, showing strong returns from MicroStrategy’s bitcoin strategy.
MicroStrategy just made a major addition to its cryptocurrency portfolio. From October 31, 2024, to November 10, 2024, the company bought 27,200 bitcoins. The price for this purchase came to around $2.03 billion. On average, MicroStrategy paid around $74,463 per bitcoin, including fees and expenses.
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MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd
— Michael Saylor⚡️ (@saylor) November 11, 2024
With this acquisition, the company’s total Bitcoin holdings now stand at 279,420 bitcoins. The total investment value is estimated at $11.9 billion, with an average purchase price of $42,692 per bitcoin. This steady acquisition strategy supports MicroStrategy’s goal of maximizing digital asset exposure.
ATM Sales Fund Bitcoin Purchases
MicroStrategy leveraged its ‘at-the-market’ (ATM) equity sales agreements to finance this recent purchase. In 2024, the company previously secured contracts whereby it could sell shares if required to meet acquisition costs. The company raised $2.03 billion through October sales agents from these ATM sales.
Previously, the August agreement allowed similar stock transactions. Together, these agreements permit MicroStrategy to sell shares totaling up to $23 billion. The August sales agreement has been nearly exhausted, and future transactions will proceed under the October agreement.
Meanwhile, the price of Bitcoin has recently reached an ATH of $82,000. This surge comes after it hit $81,000 earlier today. The price surge is in response to a renewed interest in digital assets. The surge aligns with MicroStrategy’s acquisition strategy.
BTC Yield Reaches 26.4% YTD
MicroStrategy also reported a performance metric called BTC Yield, used to assess returns on its bitcoin investments. From October 1 to November 10, 2024, the BTC Yield reached 7.3%. For the year-to-date, BTC Yield climbed to 26.4%, signaling strong performance.
This metric reflects the period-to-period change in bitcoin holdings against the company’s assumed diluted shares outstanding, which includes shares and convertible options. BTC Yield helps investors see how the strategy aligns with shareholder value.
According to recent reports, MicroStrategy’s bitcoin holdings have generated over $10 billion in unrealized gains as bitcoin’s value rose. Such gains underscore the company’s commitment to maximizing returns through its bitcoin strategy. Thus, BTC Yield is the key indicator of value growth for the asset acquisition because it is tied to shareholder benefit.
It seems #MicroStrategy the largest corporate holder of #Bitcoin, reports unrealized gains in the millions. Its #BTC reserves now stand at $20B—double their original purchase value📈
Thats the power of #Bitcoin💪 pic.twitter.com/htzeG10Y5g
— TradingWithTroy (@TradingWithTroy) November 11, 2024
Understanding BTC Yield’s Value to Shareholders
BTC yield metric focuses on the value associated with bitcoin and cannot be treated as a complete measure of financial performance. However, it does not include liabilities and omits the company’s other debts or expenses. The metric assumes that convertible shares will be included in the total share count in the future.
The management has indicated that BTC Yield is meant to complement, not replace, traditional financial indicators. By prioritizing a bitcoin-driven capital strategy, MicroStrategy’s approach falls in line with investors looking for digital asset exposure. In addition, Bitcoin prices may rise and fall from time to time, but BTC Yield helps one measure the effect of the company’s investments on the potential value added.
The commitment of MicroStrategy to Bitcoin demonstrates a bold strategy in the corporate world. Given the way cryptocurrency markets are evolving, it is likely that investor interest in the company’s BTC Yield metric and asset acquisition approach will only intensify.
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