MicroStrategy Incorporated (NASDAQ:MSTR) recently disclosed in an 8-K filing with the Securities and Exchange Commission that it has actively increased its Bitcoin holdings. Between November 11, 2024, and November 17, 2024, the company acquired approximately 51,780 bitcoins at an average price of approximately $88,627 per bitcoin, totaling around $4.6 billion in cash. These acquisitions were funded through the issuance and sale of shares under a Sales Agreement.
As of November 17, 2024, MicroStrategy and its subsidiaries collectively hold approximately 331,200 bitcoins acquired at an aggregate purchase price of approximately $16.5 billion, with an average purchase price per bitcoin of around $49,874. Moreover, during the same period, MicroStrategy sold approximately 13,593,865 shares under its Sales Agreement, generating net proceeds of approximately $4.6 billion. A significant portion of shares, about $15.3 billion, remains available for issuance and sale under the agreement.
MicroStrategy outlined that the BTC Yield metric assists in evaluating the effectiveness of its strategy in acquiring bitcoin, which the company believes enhances shareholder value. However, the company emphasized that BTC Yield is not a direct measure of income generated by its operations, the return on investment on its bitcoin holdings, or the trading price of its shares.
The company emphasized several critical points regarding BTC Yield, cautioning investors that the metric does not consider all liabilities and debt that might affect shareholder value. MicroStrategy underlined that the BTC Yield metric does not capture the entire picture, particularly the source of capital used for bitcoin acquisition.
The information shared in the filing indicates that MicroStrategy does not incorporate the BTC Yield metric as a standalone financial measure. Instead, it functions as a strategic evaluation tool to comprehend the efficient deployment of equity capital for bitcoin purchases.
MicroStrategy clarified that this supplementary KPI should be interpreted with caution and not as a primary financial indicator. Investors were advised to rely on the company’s financial statements and SEC filings for comprehensive information.
The recently disclosed information in MicroStrategy’s report showcases the continued strategic expansion of its Bitcoin holdings in conjunction with share sales. The company’s decisions align with its expressed objective of enhancing shareholder value through cryptocurrency investments and strategic financial maneuvering.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MicroStrategy’s 8K filing here.
MicroStrategy Company Profile
MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.
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