Software intelligence firm Microstrategy Inc. (Nasdaq: MSTR), the largest corporate holder of bitcoin, announced on Monday that it has expanded its bitcoin portfolio. Between Oct. 31 and Nov. 10, the company purchased 27,200 bitcoins at an average cost of $74,463 per bitcoin, amounting to roughly $2.03 billion. This purchase increased Microstrategy’s overall bitcoin holdings to 279,420 BTC, acquired at an average price of $42,692 per bitcoin for a total of approximately $11.9 billion in acquisition costs. Confirming this, executive chairman Michael Saylor posted on social media platform X:
Microstrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin.
The company’s latest bitcoin acquisition was funded through its at-the-market (ATM) stock sales agreements established in August and October. These agreements allow Microstrategy to issue and sell up to $23 billion in shares. As of Nov. 10, the company has raised $2.03 billion through the sale of approximately 7.85 million shares. With the August agreement largely depleted, any further stock sales will be conducted under the October agreement, which permits Microstrategy to issue shares worth up to $21 billion.
Microstrategy also highlighted its BTC Yield, a key performance indicator (KPI) that tracks the growth of its bitcoin holdings relative to its outstanding shares. This metric reached 26.4% year-to-date, with a quarterly increase of 7.3%. The KPI helps the company assess the effectiveness of its strategy to increase shareholder value by leveraging stock sales to fund bitcoin purchases. This approach, Microstrategy states, aims to supplement shareholder returns and strengthen its position as a bitcoin-centric corporation.
This BTC acquisition followed Microstrategy’s announcement of a $42 billion “21/21 Plan” to enhance its digital asset reserves. The plan includes raising $21 billion through equity and $21 billion through fixed-income securities over the next three years to expand bitcoin holdings and boost shareholder value.
