Nasdaq-listed business intelligence firm MicroStrategy has announced it acquired an additional 55,500 Bitcoin (BTC) for a whopping $5.4 billion, at an average price of $97,862 per BTC.
The move, MicroStrategy’s largest Bitcoin acquisition to date, brings its total BTC holdings to 386,700 BTC that were acquire for $21.9 billion, at an average price of $56,761 per BTC and notably brings its average price per coin up.
The firm’s Bitcoin stash is now worth around $37.49 billion, with Bitcoin at the time of writing trading at around $97,000 per coin. In a post on the microblogging platform X (formerly known as Twitter), MicroStrategy’s founder and Chairman Michael Saylor revealed the firm’s treasury operations have netted a BTC yield of 59.3%, which provided a “benefit of ~112,125 BTC to our shareholders.”
Year to date, $MSTR‘s treasury operations delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders, or ~341 BTC per day. At $100K per BTC, that would equate to $11.2 billion for the year so far, or $34.1 million per day.
— Michael Saylor (@saylor) November 25, 2024
The company’s Bitcoin Yield metric is used to gauge how effective its BTC accumulation strategy is. Rather than representing yield obtained on its BTC holdings, it represents the percentage change in the ratio between its BTC holdings and assumed diluted shares outstanding.
Its latest Bitcoin purchase comes after it secured $3 billion to expand its BTC holdings through a convertible bond offering. The firm financed its purchase partly through the sale of convertible senior notes due in 2029 that carry a 0% coupon rate and a 55% conversion premium.
MicroStrategy’s Bitcoin accumulation
The business intelligence firm first started accumulating Bitcoin more than four years ago, in August 2020, when it made an initial investment of around $250 million to buy 21,454 BTC. It then became the first publicly-traded company to adopt a Bitcoin allocation strategy.
MicroStrategy’s initial Bitcoin buys were for an average price of $11,600 per BTC, but the firm kept on accumulating over time. According to BitcoinTreasuries data, this year alone it went from around 174,530 BTC on its balance sheet to the current 386,700.
MicroStrategy’s bitcoin holdings. Source: BitcoinTreasuries
The firm’s Bitcoin holdings have turned it into a crypto hedge fund proxy in the eyes of some investors, with its stock price often moving in tandem with the price of Bitcoin.