MicroStrategy spends $1.11 billion to increase its Bitcoin holdings, averaging $60,408 per coin
2 min readMicroStrategy announced last week that it had recently invested $1.11 billion to increase its holdings of 18,300 Bitcoins, the company’s largest Bitcoin investment since 2021.
The average increase in Bitcoin holdings is 60,408 USD per coin
According to documents submitted to the U.S. Securities and Exchange Commission (SEC), MicroStrategy purchased these bitcoins at an average price of 60,408 USD per coin between August 6 and September 12 this year.
As of now, MicroStrategy holds approximately 244,800 bitcoins, accounting for approximately 1% of all bitcoins issued worldwide. The total purchase cost is 9.45 billion USD. The current market value of bitcoins held is approximately 14.2 billion USD, with a floating profit of approximately 4.75 billion USD.
MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U
— Michael Saylor⚡️ (@saylor) September 13, 2024
Michael Saylor, the company’s executive chairman, posted on the social platform X that MicroStrategy’s Bitcoin yield reached 4.4% this quarter and 17% so far this year. The so-called “Bitcoin yield” is a key performance indicator (KPI) developed by MicroStrategy to measure the change in the ratio between “Bitcoin held by the company” and “the number of outstanding shares after hypothetical dilution.”
The funds for the purchase of Bitcoin mainly come from the proceeds of the company’s stock issuance and sales. According to the agreement reached between MicroStrategy and the sales agent in August this year, the company can issue up to 2 billion USD worth of stocks. As of September 12, MicroStrategy has sold more than 8.04 million shares and raised approximately 1.11 billion USD.
