As a seasoned investor who has witnessed the evolution of technology and finance over the past three decades, I find MicroStrategy’s strategic move to amass Bitcoin (BTC) a fascinating development. Having started my career in the early days of software development, it’s intriguing to see a company like MicroStrategy pivot towards this new asset class with such conviction.
MicroStrategy’s recent BTC purchases have taken its total holdings to 244,800 coins.
As an analyst, I’m sharing that from August 6 to September 12, MicroStrategy, a company I analyze, acquired an additional 18,300 bitcoins (BTC), bringing our total holdings to 244,800. Interestingly, Michael Saylor, the co-founder of this software company established in 1989, has steered MicroStrategy towards a new direction in recent years. This new focus includes not just business intelligence and software services, but also strategic acquisitions of bitcoin.
Last week, Saylor revealed that the company purchased Bitcoin at an average price of approximately $60,408 per coin. So far this quarter, the BTC holdings have generated a yield of 4.4%, and year-to-date, this figure rises to 17%. The concept of BTC yield, developed by the company, measures the percentage change in the ratio between its Bitcoin holdings and diluted outstanding shares over time. The total cost basis for their entire Bitcoin portfolio is roughly $9.45 billion, which equates to an average acquisition price of around $38,585 per coin.
Saylor’s X post from last week detailed the numbers. “MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin.”
To provide more clarity, the report submitted to the SEC regarding Bitcoin purchases offers an extensive examination of the BTC yield metric discussed in Saylor’s post. The term “BTC Yield” refers to a Key Performance Indicator (KPI) that calculates the percentage change over time of the company’s Bitcoin holdings divided by its Assumed Diluted Shares Outstanding. The company employs this BTC Yield KPI as a tool to evaluate the success of its strategy for acquiring Bitcoin, which it believes will positively impact shareholders.
In 2020, MicroStrategy made a move to include Bitcoin in its assets, eventually amassing the most significant Bitcoin holding among all publicly traded corporations globally.
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2024-09-17 15:21