MicroStrategy Acquires 7,420 Bitcoin, Strengthening Position as Top Corporate Holder
Nasdaq-listed software company MicroStrategy (MSTR) has further solidified its commitment to Bitcoin by purchasing an additional 7,420 BTC for approximately $458.2 million. The acquisition, completed between September 13 and 19, 2024, was executed at an average price of $61,750 per Bitcoin. This latest purchase brings MicroStrategy's total holdings to 252,220 BTC, valued at nearly $16 billion at current market prices.
Key Details of the Transaction
- Funding Source: Proceeds from MicroStrategy's upsized convertible note offering, which increased from $700 million to **$1.01 billion**.
- Average Purchase Price: $61,750 per BTC.
- Total Bitcoin Holdings: 252,220 BTC, acquired at an average price of $39,266 per BTC.
- Remaining Funds: $889 million from MicroStrategy's $2 billion at-the-market (ATM) equity issuance remains available for future BTC acquisitions.
Bitcoin Yield Metric Hits 5.1%
MicroStrategy introduced a novel Bitcoin yield metric, which measures the growth of its BTC holdings relative to its fully diluted shares outstanding. The yield rose to 5.1% this quarter, up from 4.4% as of September 13, 2024. This metric underscores the company's strategic focus on maximizing Bitcoin accumulation per share.
Market Reaction and Industry Trends
MicroStrategy's shares dipped 1.5% following the announcement, aligning with broader declines in U.S. equity indices and Bitcoin prices. However, the company continues to lead corporate Bitcoin adoption, inspiring other public firms—including Semler Scientific, Marathon Digital, and Metaplanet—to issue debt for BTC accumulation.
👉 Explore how Bitcoin is reshaping corporate treasuries
Frequently Asked Questions (FAQs)
Why did MicroStrategy increase its convertible note offering?
MicroStrategy upsized its offering from $700 million to **$1.01 billion** to secure additional capital for Bitcoin purchases, reflecting its confidence in BTC as a long-term treasury asset.
What is MicroStrategy's average Bitcoin purchase price?
The company's average purchase price stands at $39,266** per BTC, with total expenditures reaching **$9.9 billion for its 252,220 BTC holdings.
How does MicroStrategy's Bitcoin yield metric work?
The Bitcoin yield measures the percentage increase in BTC holdings relative to diluted shares outstanding. It rose to 5.1% this quarter, demonstrating the success of MicroStrategy's accumulation strategy.
👉 Learn more about Bitcoin investment strategies
Final Thoughts
MicroStrategy's aggressive Bitcoin acquisition strategy reinforces its leadership in corporate BTC adoption. With $889 million still available for purchases, the company remains poised to further expand its holdings, setting a benchmark for other firms exploring Bitcoin as a treasury reserve.
James van Straten contributed to reporting.