MicroStrategy, the world’s leading Bitcoin-focused business intelligence company, has made a substantial addition to its Bitcoin treasury.
The company announced that between October 31, 2024 and November 10, 2024, it acquired approximately 27,200 bitcoins for approximately $2.03 billion in cash, at an average price of approximately $74,463 per bitcoin, inclusive of fees and expenses.
This latest purchase, as announced on X by CEO Michael Saylor, brings MicroStrategy’s total Bitcoin holdings to approximately 279,420 BTC.
They acquired these at an aggregate purchase price of approximately $11.9 billion and an average purchase price of approximately $42,692 per bitcoin.
Favorable Market Conditions and Bitcoin Performance
Microstrategy’s Bitcoin acquisition comes at a time when the flagship cryptocurrency has made significant price gains, breaking the $80,000 mark for the first time on Sunday, November 5, 2024.
Bitcoin then climbed as high as $82,394.7 on Monday, November 6, 2024, marking a 3.8% increase over the weekend amid high trading volumes of almost $100 billion.
As of press time, the god coin has made a 2.64% price increase in the last 24 hours and a 19.28% price increase in the past 7 days. It currently trades at $81,817.65 today.
This positive market sentiment and strong performance of Bitcoin have created a favorable environment for MicroStrategy to continue expanding its crypto treasury.
Funding Mechanism and Shareholder Dilution
To finance the latest Bitcoin purchases, MicroStrategy utilized proceeds from the issuance and sale of its class A common stock under the company’s existing Sales Agreements.
These agreements, established in August 2024 and October 2024, allow MicroStrategy to issue and sell up to $23 billion worth of shares to fund its Bitcoin acquisition strategy.
As of November 10, 2024, the company had sold an aggregate of 7,854,647 shares under these agreements, generating approximately $2.03 billion in net proceeds for the Bitcoin purchases.
Also Read: Peter Schiff Urges MicroStrategy’s Saylor to Borrow $4.3B for US Silk Road Bitcoin Sale
Key Performance Indicator: BTC Yield
MicroStrategy has also provided updates on its BTC Yield, a key performance indicator that tracks the percentage change in the ratio between the company’s Bitcoin holdings and its Assumed Diluted Shares Outstanding.
From October 1, 2024 to November 10, 2024, MicroStrategy has wide prospects given that their BTC Yield was 7.3%, while the year-to-date BTC Yield from January 1, 2024 to November 10, 2024 was 26.4%.
This metric is used by the company to assess the performance of its Bitcoin acquisition strategy and its impact on shareholder value.