MicroStrategy Buys 20,356 More Bitcoins

Introduction

MicroStrategy Incorporated has filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) to report significant corporate events. This post provides a clear breakdown of the filing’s key highlights, including updates on convertible notes, bitcoin holdings, and performance metrics.

1. 2030 Convertible Notes Offering

MicroStrategy recently completed a private offering of its 0% Convertible Senior Notes due 2030. Key details include:

Aggregate Principal Amount: $2.0 billion
Conversion Premium: Approximately 35% over the U.S. composite volume-weighted average price of MicroStrategy’s Class A common stock on February 19, 2025.
Initial Purchasers’ Option: An additional $300 million in convertible notes, available until February 27, 2025.
Net Proceeds: Approximately $1.99 billion, intended primarily for bitcoin acquisitions.

2. ATM Equity Offering Update

MicroStrategy announced that, between February 18 and February 23, 2025, no shares of Class A common stock were sold under its at-the-market (ATM) equity offering program.

3. Bitcoin Holdings Update

MicroStrategy continues its aggressive bitcoin acquisition strategy. Key updates as of February 23, 2025, include:

Recent Purchase: 20,356 bitcoins for approximately $1.99 billion in cash, at an average price of $97,514 per bitcoin.
Total Bitcoin Holdings: 499,096 bitcoins.
Aggregate Purchase Price: $33.1 billion, averaging $66,357 per bitcoin (inclusive of fees and expenses).

4. Key Performance Indicators (KPIs)

MicroStrategy introduced key metrics to assess its bitcoin investment strategy:

BTC Yield, BTC Gain, and BTC $ Gain (YTD as of February 23, 2025):

BTC Yield: 6.9%
BTC Gain: 30,702 BTC
BTC $ Gain: $2.941 billion (based on Coinbase’s bitcoin price at 4:00 PM EST on February 23, 2025)

These KPIs provide insights into how effectively MicroStrategy converts equity capital into bitcoin holdings.

5. Shares Outstanding

A breakdown of MicroStrategy’s share structure as of February 23, 2025:

Class A Shares: 240,646,000
Class B Shares: 19,640,000
Basic Shares Outstanding: 260,286,000
Assumed Diluted Shares Outstanding: 294,063,000

6. Important Considerations for Investors

MicroStrategy emphasizes that its BTC-related KPIs are supplemental metrics, not traditional financial measures. They exclude liabilities, debt, and preferred stock, focusing solely on the impact of bitcoin acquisitions relative to equity capital.

The company also noted potential risks:

Debt refinancing could impact BTC Yield, Gain, and $ Gain.
Issuance of shares for dividends could dilute metrics.
The trading price of MicroStrategy stock is influenced by factors beyond bitcoin holdings.

7. Strategy Dashboard and Further Disclosures

MicroStrategy maintains a Strategy Dashboard on its website to provide real-time updates on bitcoin purchases, holdings, and key performance metrics. Investors are encouraged to monitor this dashboard for the latest information.

Disclaimer: This post summarizes the SEC Form 8-K filing. For complete details, refer to the official filing on the SEC website.