01—Abstract
Summary
Summary of the 8-K filed December 2, 2024. Cited figures are marked; the original filing is the authoritative source.
MicroStrategy Incorporated, now Strategy Inc, reported in this Form 8-K filed December 2, 2024 that it continued issuing class A common stock under its at-the-market Sales Agreement and using the proceeds to buy bitcoin.
Between November 25 and December 1, 2024, the company sold 3,728,507 Shares for aggregate net proceeds of approximately $1.48 billiona, leaving about $11.3 billion of the original $21 billion program available as of December 1, 2024. Over the same period, the company acquired approximately 15,400 bitcoins for about $1.5 billion in cash at an average price of approximately $95,976 per bitcoin, funded by the share sales. As of December 1, 2024, its total holdings stood at approximately 402,100 bitcoins, acquired at an aggregate purchase price of about $23.4 billion, an average of approximately $58,263 per bitcoin.
The filing also furnishes a BTC Yield key performance indicator, which the company reports at 38.7%b for the period from October 1 to December 1, 2024 and 63.3% year to date. The company states that this non-GAAP-style metric is narrow in purpose, does not account for debt, and is not a measure of operating performance, return on investment, or a predictor of share price. Assumed Diluted Shares Outstanding rose to 270,243 thousand as of December 1, 2024, from 235,042 thousand at September 30, 2024.
02—Key points
Key Highlights
- Sold 3,728,507 Class A shares under the Sales Agreement from November 25 to December 1, 2024, for net proceeds of approximately $1.48 billion (after sales commissions).
- About $11.3 billion of the $21 billion Sales Agreement capacity remained available as of December 1, 2024.
- Acquired approximately 15,400 bitcoins for about $1.5 billion in cash at an average price of approximately $95,976 per bitcoin, funded by share sale proceeds.
- Total bitcoin holdings reached approximately 402,100 as of December 1, 2024, versus 252,220 as of September 30, 2024 and 189,150 as of December 31, 2023.
- Aggregate bitcoin cost basis of approximately $23.4 billion, with an average purchase price of approximately $58,263 per bitcoin, inclusive of fees and expenses.
- BTC Yield KPI was 38.7% quarter to date and 63.3% year to date as of December 1, 2024.
- Assumed Diluted Shares Outstanding increased to 270,243 thousand as of December 1, 2024, from 235,042 thousand at September 30, 2024, with the company noting BTC Yield does not account for debt or predict share price.
03—Questions
Frequently Asked Questions
How much capital did the company raise through its at-the-market program in this period?
From November 25 to December 1, 2024, the company sold 3,728,507 Class A shares for aggregate net proceeds of approximately $1.48 billion, after sales commissions. About $11.3 billion of the $21 billion program remained available as of December 1, 2024.
What did the company do with the proceeds?
The filing states that the bitcoin purchases were made using proceeds from the issuance and sale of shares under the Sales Agreement. The company acquired approximately 15,400 bitcoins for about $1.5 billion in cash during the same period.
What is the company's total bitcoin position?
As of December 1, 2024, the company and its subsidiaries held approximately 402,100 bitcoins, acquired at an aggregate purchase price of approximately $23.4 billion, or an average of approximately $58,263 per bitcoin, inclusive of fees and expenses.
What is BTC Yield, and what does the company say it does not measure?
BTC Yield is a KPI representing the percentage change period-to-period in the ratio of bitcoin holdings to Assumed Diluted Shares Outstanding. The company reported 38.7% for October 1 to December 1, 2024, and 63.3% year to date. The company states the metric does not account for debt or other senior claims, is not an operating or liquidity measure, is not equivalent to traditional yield, and is not indicative or predictive of its share price.
04—Continue