MicroStrategy’s Bitcoin Acquisition Strategy Pays Off
MicroStrategy, a software company co-founded by Michael Saylor in 1989, has been making headlines in the cryptocurrency world with its recent acquisition of 18,300 bitcoin (BTC) coins. This move brings the company’s total BTC holdings to an impressive 244,800 coins, solidifying its position as one of the largest holders of the digital asset in the world.
The company’s foray into the world of cryptocurrency began in 2020 when it started adding BTC to its reserves. Since then, MicroStrategy has been on a mission to accumulate as much bitcoin as possible, viewing it as a key strategic objective alongside its core business of providing business intelligence and software services.
Last week’s BTC acquisition by MicroStrategy was made at an average price of $60,408 per coin, according to Saylor. This brings the company’s total cost basis for its entire BTC holdings to around $9.45 billion, with an average acquisition price of approximately $38,585 per coin. The company has seen impressive returns on its investment, with a BTC yield of 4.4% quarter-to-date (QTD) and 17% year-to-date, showcasing the success of its bitcoin acquisition strategy.
Understanding MicroStrategy’s BTC Yield Metric
One key metric that MicroStrategy uses to assess the performance of its bitcoin acquisition strategy is BTC yield. This metric represents the percentage change period-to-period of the ratio between the company’s bitcoin holdings and its Assumed Diluted Shares Outstanding. In simple terms, BTC yield helps the company quantify the impact of its bitcoin acquisitions on shareholders’ value over time.
In a recent statement, Saylor elaborated on the importance of BTC yield for MicroStrategy. “BTC Yield is a KPI that represents the % change period-to-period of the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding,” he said. “We use BTC Yield as a KPI to help assess the performance of our strategy of acquiring bitcoin in a manner that we believe is accretive to shareholders.”
This focus on measuring the impact of its bitcoin acquisitions through metrics like BTC yield demonstrates MicroStrategy’s commitment to transparency and accountability in its cryptocurrency investment strategy.
MicroStrategy Leads the Pack in BTC Holdings
With its recent acquisition of 18,300 BTC coins, MicroStrategy has further solidified its position as the largest holder of BTC among publicly listed companies worldwide. The company’s aggressive approach to accumulating bitcoin has paid off, with its total holdings now standing at an impressive 244,800 coins.
MicroStrategy’s success in the world of cryptocurrency has not gone unnoticed, with many industry experts praising the company’s bold strategy and foresight in recognizing the potential of bitcoin as a valuable asset. As other companies begin to follow suit and explore adding bitcoin to their reserves, MicroStrategy remains a trailblazer in the world of corporate cryptocurrency investment.
In conclusion, MicroStrategy’s recent BTC acquisitions have proven to be a smart move, with the company’s total holdings now standing at 244,800 coins. The company’s focus on metrics like BTC yield to assess the performance of its bitcoin acquisition strategy demonstrates its commitment to maximizing shareholder value through strategic cryptocurrency investments. As the world of digital assets continues to evolve, MicroStrategy’s position as a leader in BTC holdings sets it apart as a visionary in the realm of corporate cryptocurrency investment.