MicroStrategy Plans $2B ATM Offering as Bitcoin Holdings Surge

MicroStrategy reports Q2 results with Bitcoin holdings reaching 226,500 BTC. The company plans to raise $2 billion through an ATM equity offering, while shareholders accrue more Bitcoin per share.

On August 1, MicroStrategy announced its Q2 results, revealing a significant milestone with total Bitcoin holdings reaching 226,500 BTC. The company reported several key financial moves in Q2 2024, as detailed in their quarterly presentation. These include raising $800 million through 2032 convertible notes, calling $650 million of 2025 convertible notes, and announcing a 10:1 stock split effective August 7, alongside a $2 billion ATM equity offering program.

An essential metric for evaluating Bitcoin accretion to shareholders is the Bitcoin per share ratio, calculated as BTC holdings divided by shares outstanding. Currently, this ratio stands at approximately 0.012, indicating that shareholders continue to accrue more Bitcoin per share over time. The Q2 presentation highlighted that since December 31, 2023, MicroStrategy’s Bitcoin holdings have increased by roughly 20%, rising from 189,150 BTC to 226,500 BTC. Concurrently, the assumed diluted shares outstanding have grown by approximately 7%.

The company’s use of intelligent leverage has resulted in a “BTC Yield” of 12.2% year-to-date, a measure of the period-to-period percentage change in the ratio between Bitcoin holdings and assumed diluted shares outstanding. MicroStrategy maintains a longer-term focus on BTC yield through 2027, targeting a 4-8% range.

MicroStrategy’s financial strategy includes a total debt of $3.8 billion outstanding, with a weighted average annual fixed interest rate of 1.6%. Notably, $2.2 billion of this debt is due in 2030 or later. These strategic financial maneuvers and the increasing Bitcoin holdings spotlight MicroStrategy’s commitment to enhancing shareholder value through substantial BTC accrual and intelligent debt management.

The company’s ongoing efforts and financial strategies emphasize its dedication to maximizing Bitcoin accumulation and shareholder returns, despite the volatile nature of the cryptocurrency market. MicroStrategy’s actions continue to make headlines as it remains one of the largest corporate holders of Bitcoin, setting a precedent for other companies considering similar strategies.

As the Q2 results indicate, MicroStrategy is strategically positioning itself to benefit from future Bitcoin appreciation while managing its debt and leveraging opportunities to increase Bitcoin holdings per share. The $2 billion ATM equity offering will provide additional capital to further these goals, reflecting the company’s bullish stance on Bitcoin and its potential for long-term value creation.

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