MicroStrategy buys more Bitcoin to raise holdings to 439K BTC
According to a Monday 8-K filing with the Securities and Exchange Commission (SEC), corporate Bitcoin holder MicroStrategy (MSTR) purchased an additional 15,350 BTC for about $1.5 billion, at an average price of $100,386 per Bitcoin between December 9 and December 15.
MicroStrategy has acquired 15,350 BTC for ~$1.5 billion at ~$100,386 per #bitcoin and has achieved BTC Yield of 46.4% QTD and 72.4% YTD. As of 12/15/2024, we hodl 439,000 $BTC acquired for ~$27.1 billion at ~$61,725 per bitcoin. $MSTR https://t.co/SaWLNBVkrl
— Michael Saylor⚡️ (@saylor) December 16, 2024
It comes after an additional 3,884,712 MicroStrategy shares were sold for the same amount during the same time frame. In order to raise a total of $42 billion for additional Bitcoin acquisitions, the company stated as of December 15 that about $7.65 billion worth of shares were still up for sale as part of its planned $21 billion equity offering and $21 billion in fixed-income securities.
MicroStrategy currently has 439,000 BTC
The business intelligence firm, MicroStrategy, currently has over $45 billion, or 439,000 BTC. MicroStrategy's co-founder and executive chairman, Michael Saylor, stated that the company's entire holdings were purchased at an average price of $61,725 per Bitcoin, which amounted to approximately $27.1 billion, including fees and expenses. For comparison, MicroStrategy currently owns about 2.1% of the 21 million BTC in circulation.
MicroStrategy has invested $17.5 billion in BTC
Over the last six weeks alone, MicroStrategy has added $17.5 billion in Bitcoin, or about 39% of its entire $45 billion position. As a result, its $92 billion market capitalization now trades at a substantial premium to its Bitcoin net asset value. MicroStrategy's premium to NAV valuation and its overall equity and debt-funded bitcoin acquisition program have raised concerns among many investors.
MicroStrategy year-to-date Bitcoin yield now 72.4%
MicroStrategy measures the percentage change in its Bitcoin holdings in relation to its diluted shares using a key performance indicator it calls "Bitcoin Yield." In light of the company's strategy of effectively acquiring Bitcoin to benefit shareholders, the firm's year-to-date Bitcoin yield as of December 15 is 72.4%, reflecting a notable increase in holdings while balancing share dilution.
MicroStrategy to join the QQQ ETF and Nasdaq 100
On December 23, MicroStrategy, an enterprise software company that has increasingly turned into a Bitcoin stock market proxy, will join the Nasdaq 100. The largest corporate holder of Bitcoin is MicroStrategy, which was founded by Michael Saylor, who has used the "flywheel effect" to amass enormous quantities of the cryptocurrency.
MSTR will be acquired by a number of sizable exchange-traded funds, including the highly traded QQQ ETF, as a result of its inclusion in the tech-heavy Nasdaq 100 index on December 23, along with data firm Palantir and taser manufacturer Axon Enterprise. When the stock is added to the index, Bloomberg ETF analyst James Seyffart projected that ETFs would purchase at least $2.1 billion worth of MSTR shares.
In a note to clients on Monday, the Bernstein analysts stated that MicroStrategy will rank 40th in the Nasdaq 100, which is equivalent to a 47 bps weight in the index. This will further enhance MSTR's market liquidity and expand the company's capital flywheel effect and bitcoin buying program.
MicroStrategy targets S&P 500 inclusion in 2025
With the market aiming for S&P 500 inclusion in 2025, Bernstein also anticipates greater visibility and recognition after MicroStrategy's inclusion in the Nasdaq 100 and QQQ.It is more difficult to join the S&P 500 because of the software company's poor performance. However, the company might be eligible next year due to a recent change in accounting rules regarding bitcoin valuations, the Bernstein analysts explained.
Riot Platforms has increased its holdings of Bitcoin using the proceeds from a recent convertible senior notes offering, according to another news report from today. Riot has expanded its holdings to 17,429 Bitcoin, which is currently worth $1.8 billion at the $103,873 market price. Over the last five trading days, Riot shares have increased by more than 20%.
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