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MicroStrategy Incorporated (NASDAQ:MSTR), a provider of business intelligence, mobile software, and cloud-based services, disclosed in a recent SEC filing that it has sold a significant number of shares and used the proceeds to purchase Bitcoin. The company announced on Monday that between Tuesday and Sunday, it sold approximately 2.8 million shares, generating net proceeds of around $1.1 billion.
The sales were conducted under a previously disclosed Sales Agreement with a consortium of sales agents, allowing MicroStrategy to issue and sell shares of its Class A common stock. Following these transactions, MicroStrategy has around $4.35 billion worth of shares remaining available for sale under this agreement.
Concurrently, MicroStrategy has continued to invest in Bitcoin, acquiring about 10,107 bitcoins for approximately $1.1 billion in cash, at an average price of approximately $105,596 per bitcoin. These acquisitions were financed by the proceeds from the share sales. As of Sunday, the company and its subsidiaries collectively hold approximately 471,107 bitcoins, purchased at an average price of around $64,511 per bitcoin, inclusive of fees and expenses.
In addition to these updates, MicroStrategy provided information on its Bitcoin Yield KPI, a measure it uses to assess the performance of its strategy of acquiring bitcoin. The company reported a BTC Yield of 2.90% from the start of the year to Sunday, January 26, 2025. This KPI reflects the period-to-period percentage change in the ratio between the company's Bitcoin holdings and its Assumed Diluted Shares Outstanding.
The company's strategic moves are part of its ongoing practice of leveraging its equity to finance the acquisition of Bitcoin, which it believes is accretive to shareholder value. MicroStrategy's SEC filing indicates that it uses the BTC Yield KPI to supplement investors' understanding of its approach to funding Bitcoin purchases.
The information provided in this article is based on the statements from MicroStrategy's SEC filing.
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