MicroStrategy Announces Sales of Shares and Bitcoin Holdings Update

MicroStrategy Inc. (NASDAQ:MSTR) filed a Form 8-K with the Securities and Exchange Commission on December 16, 2024, reporting significant updates on its recent financial activities. The company revealed that it had engaged in the sale of shares and the acquisition of bitcoins during specified periods.

Regarding the sale of shares, MicroStrategy disclosed that between December 9, 2024, and December 15, 2024, it had sold a total of 3,884,712 shares under a Sales Agreement, resulting in approximately $1.54 billion in net proceeds to the company after accounting for sales commissions. As of December 15, 2024, around $7.65 billion worth of shares remained available for issuance and sale as per the Sales Agreement.

In terms of Bitcoin holdings, MicroStrategy reported that, between the same period of December 9 to December 15, 2024, it acquired approximately 15,350 bitcoins for around $1.5 billion in cash. The average price per bitcoin stood at approximately $100,386, inclusive of fees and expenses. The company highlighted that these purchases were made using the proceeds generated from the sale of shares under the Sales Agreement. As of December 15, 2024, MicroStrategy and its subsidiaries collectively held about 439,000 bitcoins, obtained at a total purchase price of approximately $27.1 billion, with an average price per bitcoin amounting to roughly $61,725, inclusive of fees and expenses.

Moreover, MicroStrategy provided insights into its BTC (Bitcoin) Yield, a key performance indicator (KPI) measuring the percentage change period-to-period in the ratio between the company’s bitcoin holdings and its Assumed Diluted Shares Outstanding. This indicator stood at 46.4% for the period between October 1, 2024, and December 15, 2024, and 72.4% for the year starting on January 1, 2024, and ending on December 15, 2024. The company emphasized using BTC Yield as a metric to evaluate the effectiveness of its strategy in acquiring bitcoin in a manner deemed beneficial to shareholders.

MicroStrategy included detailed information about its BTC Yield along with changes in shares outstanding, highlighting various convertible shares, options outstanding, and RSU/PSU unvested shares. The company clarified that BTC Yield is not a comprehensive financial metric but serves as a supplementary tool for assessing the impact of issuing additional shares to purchase bitcoin.

The filing mentions that the information disclosed concerning the BTC Yield in the Form 8-K does not carry the same obligations as formal filings under the Securities Exchange Act of 1934 or the Securities Act of 1933 unless explicitly referenced. MicroStrategy also stated that the KPI is not indicative of future share performance and is intended for sophisticated investors who understand its specific purpose and limitations.

In conclusion, MicroStrategy’s recent activities surrounding share sales, acquisitions of bitcoins, and BTC Yield monitoring demonstrate the company’s strategic approach towards maximizing shareholder value and enhancing its digital asset portfolio.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MicroStrategy’s 8K filing here.

MicroStrategy Company Profile

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.