MicroStrategy Inc (NASDAQ:MSTR), currently valued at $71.4 billion in market capitalization, has announced the sale of 592,987 class A common stock shares, raising approximately $209 million in net proceeds, as detailed in a recent SEC filing. The company's stock, which has delivered an impressive 422% return year-to-date according to InvestingPro data, continues to exhibit high volatility with a beta of 3.2.
This sale, conducted between December 23 and December 29, is part of a larger Sales Agreement established on October 30, 2024, which allows for the issuance and sale of shares up to $21 billion through various sales agents.
With the proceeds from this sale, MicroStrategy acquired approximately 2,138 bitcoins at an average price of about $97,837 per bitcoin, inclusive of fees and expenses, within the same week. The company's Bitcoin investment strategy continues as it now holds approximately 446,400 bitcoins, purchased at an aggregate of $27.9 billion, averaging $62,428 per bitcoin.
In addition, the company disclosed a key performance indicator (KPI) known as BTC Yield, which measures the period-to-period percentage change in the ratio between the company's Bitcoin holdings and its assumed diluted shares outstanding. From October 1 to December 29, 2024, MicroStrategy's BTC Yield was 47.8%, and for the year to date, it was 74.1%.
The SEC filing also provided updates on the company's shares outstanding, both basic and assumed diluted, as of December 29, 2024. The calculations for assumed diluted shares outstanding include potential shares from the conversion of outstanding convertible notes, exercise of stock options, and settlement of restricted stock units and performance stock units.
For investors seeking deeper insights, InvestingPro offers a comprehensive analysis with 15+ additional ProTips and a detailed Pro Research Report, providing essential metrics and expert analysis for informed investment decisions. These figures are used to determine the BTC Yield and assess the performance of the company's Bitcoin acquisition strategy.
This information, based on a press release statement, indicates MicroStrategy's ongoing commitment to its Bitcoin investment strategy, funded through equity capital and potentially convertible instruments. The company maintains that this strategy is accretive to shareholders.
However, the BTC Yield KPI has limitations and does not account for operating performance or financial liquidity and is not indicative of future trading prices of MicroStrategy's shares.
In other recent news, MicroStrategy Inc. has made significant strides in the cryptocurrency market, purchasing an additional 15,350 bitcoins, bringing its total holdings to approximately 439,000 bitcoins.
This purchase was funded through the sale of nearly 3.9 million shares, generating net proceeds of about $1.54 billion. The company also expanded its board of directors with the addition of three new members. These are among the recent developments shaping MicroStrategy's trajectory.
In a recent SEC filing, MicroStrategy disclosed that it sold a significant amount of its class A common stock and used the proceeds to purchase Bitcoin. The company sold approximately 1.32 million shares, resulting in net proceeds of about $561 million. The company's strategy of acquiring Bitcoin has been a subject of interest for investors, as the company uses its equity to fund these purchases.
MicroStrategy also plans to adopt new Financial Accounting Standards Board (FASB) guidance for the accounting treatment of bitcoin on corporate balance sheets starting in the first quarter of 2025. This change is expected to allow the company to report positive earnings immediately. Analysts from firms such as Barclays (LON:BARC), Benchmark, Canaccord Genuity, and BTIG have maintained positive ratings on MicroStrategy's stock.
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