Microstrategy has purchased an additional 12,000 bitcoins for approximately $821.7 million, bringing their total holdings to 205,000 bitcoins acquired at an average price of $33,706 per coin after completing an $800 million convertible note offering.
Microstrategy has purchased another 12,000 bitcoins after completing an $800 million convertible note offering. The Nasdaq-listed company now holds a total of 205,000 bitcoins, acquired at an average price of $33,706 per coin.
Microstrategy Purchases Another 12,000 Bitcoins
Microstrategy (Nasdaq: MSTR), which bills itself as the world's first bitcoin development company, announced on Monday that it has acquired additional bitcoin with the proceeds from the sale of convertible notes. Microstrategy's executive chairman, Michael Saylor, detailed on social media platform X:
Microstrategy has acquired an additional 12,000 BTC for ~$821.7 million using funds from convertible notes & excess cash of ~$68,477 per bitcoin. As of 10/3/24, MSTR had 205,000 BTC acquired for ~$6.91 billion at an average price of $33,706 per bitcoin.
The note offering "was well received in the market and was increased to a total of $800 million in aggregate principal amount," the company said In a Monday filing with the U.S. Securities and Exchange Commission (SEC), Microstrategy revealed details of its latest bitcoin purchase. The company used $781.1 million from the convertible note offering, along with $40.6 million in cash, to acquire 12,000 BTC between February 26 and March 10.
This translates to an average price of approximately $68,477 per bitcoin, including fees and expenses The SEC filing further shows that on March 8, Microstrategy completed a private offering of convertible senior notes, initially targeted at $600 million.
The company explained that the note offering was "well received in the market and was increased to a total of $800 million in aggregate principal amount," and added: "This amount includes the exercise of the initial purchasers' option to purchase an additional $100 million of notes." Net proceeds from the offering to Microstrategy amounted to approximately $782.0 million." The company detailed that the notes are "unsecured, senior to Microstrategy's obligations, and bear interest at a rate of 0.
Saylor recently doubled down on his bullish stance on bitcoin, stating that BTC is outperforming other asset classes. He expects capital to continue flowing into cryptocurrencies.
What do you think about Microstrategy increasing its bitcoin holdings to 205K? Let us know in the comments section below.
