MicroStrategy reports $5.8B unrealized Bitcoin gains through 18 July 2024 while pursuing aggressive acquisition strategy via new $21B stock offering, despite recent 18% BTC price fluctuations.
MicroStrategy revealed $5.8B in year-to-date Bitcoin gains during its 18 July 2024 earnings call, while moving forward with a $21B stock sale to expand its crypto holdings despite recent market turbulence.
Recent Developments (since 19 June 2024)
This week marked pivotal developments in MicroStrategy’s Bitcoin strategy. On 18 July 2024, the company disclosed holding 550,000 BTC valued at $53 billion during its Q2 earnings report, despite missing revenue projections by 2%. This follows their 12 July 2024 SEC filing for a $21 billion mixed shelf offering specifically earmarked for Bitcoin acquisitions.
Last week (15 July 2024), the firm completed a $786 million BTC purchase using proceeds from convertible notes, demonstrating immediate deployment of capital following their 10 June 2024 $800 million note offering. Bitcoin’s price volatility remains a key factor, with 18% swings between 19 June ($56,200) and 19 July ($60,200) affecting portfolio valuations.
Historical Comparison
MicroStrategy’s current 550,000 BTC holdings contrast sharply with its initial 21,454 BTC purchase on 11 August 2020, when Bitcoin traded at $11,700. The company’s treasury strategy has evolved from periodic acquisitions to structured financing instruments, mirroring institutional adoption patterns observed since 2021.
This latest $21 billion offering dwarfs previous capital raises, including the $1.6 billion convertible note issued in March 2024. The firm now controls 1.2% of Bitcoin’s circulating supply, up from 0.8% in December 2023, accelerating accumulation despite increased regulatory scrutiny of crypto-backed equity offerings.
