MicroStrategy, the business intelligence and software firm led by CEO Michael Saylor, has acquired 18,300 Bitcoin between August 6 and September 12, according to a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC).
The latest transaction, valued at $1.11 billion, was made at an average price of $60,408 per Bitcoin, including expenses and fees. This acquisition brings MicroStrategy’s total Bitcoin holdings to around 244,800 BTC, currently worth approximately $14.14 billion.
Since its first Bitcoin purchase on August 11, 2020, MicroStrategy has steadily expanded its holdings, acquiring BTC at an average price of $38,585 per coin, with a cumulative investment of about $9.45 billion. Despite mixed reactions from financial analysts, the firm has continued its aggressive acquisition strategy.
To finance the recent purchase, MicroStrategy sold 8.05 million company shares, raising $1.11 billion by September 12. The capital generated from these sales was directly allocated to expanding the firm’s BTC portfolio.
On August 10, MicroStrategy held 226,500 BTC, acquired at an average cost of $37,000 per BTC, giving the company $13.77 billion in Bitcoin reserves. At that time, Bitcoin’s price was around $60,500, resulting in unrealized profits of $5.39 billion.
Since its initial Bitcoin investment, MicroStrategy has significantly outperformed the S&P 500 index, with its stock price rising by more than 1,000%, far exceeding the returns of the broader market.
In its Q2 earnings call, MicroStrategy posted losses of $5.74 per share on a quarterly revenue of $111.4 million, a 7% decline year-over-year.
Meanwhile, the world’s largest corporate Bitcoin holder, revealed a net loss of $123 million in Q2, a slight improvement from its net loss of $137 million in the same quarter of 2023. The frim shared that its total holdings of 226,500 Bitcoin had been acquired for $8.5 billion at an average price of $36,821 per Bitcoin.
MicroStrategy also unveiled a new key performance indicator called “Bitcoin Yield,” representing the percentage change over time in the ratio between the firm’s Bitcoin holdings and its diluted outstanding shares. Diluted shares outstanding include all of the company’s common stocks and any additional shares created from convertible notes or exercising stock options.
MicroStrategy said its BTC yield currently stands at 12.2% year-to-date, noting that it would target a rate of between 4%–8% annually over the next three years. “The Company uses BTC Yield as a KPI to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders,” it said in a statement.
