Capital B disclosed that the company had purchased five more bitcoins, with a turnover of approximately Euro280,000, and that strategic bitcoin reserves had increased to 3,145. The company, listed on the growth board of the Pan-European Exchange in Paris, is still financing its Bitcoin Treasury strategy through increased equity.
Increased income for continued purchase of currency
According to the bulletin, the purchase took place after the completion of a round of replenishments totalling Euro301,460.25. The financing is provided through the CAPITAL B ATM-type agreement with the French regulatory agency TOBAM.
Between 27 July and 7 August, the company issued a total of 647,110 ordinary shares at an average price of approximately Euro0.47 per share. According to the company, the issue price was 3.52 per cent higher than the closing premium on 14 August. Data from the Pan-European Exchange show that the unit received 0.454 euros last Friday, a decline of 2.72 per cent that day.
Bitcoin reserve book value below cost
The company disclosed that the cumulative acquisition cost of its 3,145 strategic bitcoin reserves was €284.2 million, but that the net value, at the reference price used for this disclosure, was €170.9 million, or approximately €113.3 million less.
This value does not represent the net assets of the company as a whole, but is a separate snapshot of the reserves of TTCs. According to Capital B, the calculation was based on the collection price of bitcoin on the date of each press release.
In addition to the strategic reserve, the company disclosed that it held 61 bitcoin for operational purposes. This part of the warehouse is managed separately from the strategic reserve and is not included in the Bitcoin strategy performance indicators published by the company.
2.14% BTC Yield during year
At the same time, the company disclosed that, as of the beginning of the year, its “BTC Yield” stood at 2.14 per cent, corresponding to 60.3 BTC Gain, which is approximately Euro3.28 million, and that BTC Yield is 0.28 per cent as of the quarter to date. The total amount of bitcoin per share remains at 736.4, the same as on 3 August.
In particular, the company states that the so-called “BTC Yield” and the rate of return in non-traditional financial contexts do not represent return on investment, operating profits or the proceeds of the Bitcoin hold. This indicator is primarily used to track changes in the amount of bitcoin per share after a fully spread.
Additional information:It is also mentioned that the way in which the funds are managed in the company's Bitcoin treasury is becoming fragmented. As one of the largest listed companies in the world, Strategy sold a total of 3,328 bitcoins for two weeks in a row, raising approximately $213.3 million, mainly for priority share dividends and SRC share buy-backs.