MicroStrategy Inc . (NASDAQ:MSTR), which has delivered an impressive 547% return year-to-date according to InvestingPro data, disclosed on Monday that it sold nearly 3.9 million shares, raising approximately $1.54 billion.
The sales occurred between December 9 and December 15, 2024, under a previously established Sales Agreement with several sales agents, including TD (TSX:TD) Securities and Barclays (LON:BARC) Capital Inc. Following these transactions, the company has about $7.65 billion worth of shares still available for sale under the agreement.
The proceeds were used to purchase roughly 15,350 bitcoins, at an average cost of $100,386 per bitcoin, which includes fees and expenses. This acquisition brings the company's total bitcoin holdings to approximately 439,000 bitcoins, acquired at an aggregate price of around $27.1 billion, with an average purchase price of about $61,725 per bitcoin.
With a current market capitalization of $88.37 billion, MicroStrategy maintains a moderate debt level while operating with notably high price multiples.
In addition to the sales and acquisition update, MicroStrategy provided a performance indicator known as BTC Yield. Between October 1 and December 15, 2024, the company's BTC Yield was 46.4%, and for the year to date, it was 72.4%. BTC Yield measures the change in the ratio of the company's bitcoin holdings to its Assumed Diluted Shares Outstanding.
This key performance indicator is used by the company to assess the effectiveness of its strategy to acquire bitcoin in a way that is believed to be accretive to shareholders. The information in this article is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, MicroStrategy Incorporated has been maintaining a strong focus on its Bitcoin acquisition strategy. The company recently purchased approximately 15,400 bitcoins for about $1.5 billion, funded through the sale of class A common stock. This has increased MicroStrategy's total Bitcoin holdings to approximately 423,650 bitcoins.
Analyst firms such as Barclays, Benchmark, Canaccord Genuity (TSX:CF), and BTIG have maintained positive ratings on MicroStrategy's stock, with Bernstein maintaining an Outperform rating and a price target of $600.00. Benchmark also reaffirmed its Buy rating on MicroStrategy with a price target of $650, based on a sum-of-the-parts valuation.
The possibility of MicroStrategy's inclusion in the Nasdaq100 index has been highlighted by Bernstein and Bloomberg Intelligence, a development that could lead to significant market participation. This potential inclusion is also seen as a precursor to the company's consideration for the S&P 500 index by 2025.
MicroStrategy has indicated 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. These are recent developments that investors should consider.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.