Bitcoin development company MicroStrategy announced that it is issuing new shares to buy Bitcoin. So far, MicroStrategy holds a total of 244,800 Bitcoins, with unrealized profits of up to US$5.3 billion.
MicroStrategy to buy another 18,300 Bitcoins
MicroStrategy purchased 18,300 Bitcoins between August 6, 2024, and September 12, 2024, for approximately $1.11 billion in cash, at an average price of $60,408/BTC. As of September 12, 2024, MicroStrategy held a total of 244,800 Bitcoins, with a total cost of $9.45 billion and an average purchase price of $38,585 per Bitcoin.
Based on the Bitcoin price of $60,300 at the time of writing, its unrealized profit is as high as $5.3 billion.
New shares issued to buy Bitcoin
MicroStrategy entered into sales agency agreements on August 1, 2024 with TD Securities (USA) LLC, The Benchmark Company, LLC, BTIG, LLC, Canaccord Genuity LLC, Maxim Group LLC and SG Americas Securities, LLC for the issuance of Class A common shares, with a total issuance amount of US$2 billion. As of September 12, 2024, MicroStrategy has sold a total of 8,048,449 shares under the sales agreement and received approximately 1.11 billion, all of which has been used to purchase Bitcoin.
“Bitcoin Yield” Has Reached 17%
MicroStrategy introduced a new key performance indicator "Bitcoin Yield" for its Bitcoin strategy this year. Bitcoin Yield is the ratio of a microstrategy’s Bitcoin holdings to its diluted shares outstanding. MicroStrategy believes that this KPI can be used to supplement investors' understanding and decision-making about buying Bitcoin through the issuance of additional common shares or instruments convertible into common shares. In its last financial report, MicroStrategy said it aimed to grow at 4% to 8% per year over the next three years.
(Micro Strategy Financial Report: Introducing the "Bitcoin Yield" KPI indicator, and issuing another 2 billion Mg of new shares to buy Bitcoin)
However, its “Bitcoin return” so far this year has been as high as 17%.
This article MicroStrategy issues new shares to buy Bitcoin, holds more than 240,000 BTC, and has unrealized profits of US$5.3 billion. It first appeared on Chain News ABMedia.
