The company raised $1 billion through its latest corporate bond issuance. Of this, about $500 million was used to repurchase bonds, while the remaining funds were invested in Bitcoin.
In a statement made on the evening of September 20, 2024, MicroStrategy's CEO, billionaire Michael Saylor, confirmed the completion of the issuance of $1.01 billion in convertible bonds with an annual interest rate of 0.625%, maturing in 2028. The amount raised exceeded the initial plan of $700 million announced three days earlier.
After accounting for costs and discounts, MicroStrategy netted $997.4 million from the issuance. Of this, the company used $500 million to repurchase bonds with a 6.125% interest rate due in 2028, while the remaining funds were allocated to Bitcoin purchases and other purposes.
With the leftover funds from the issuance, MicroStrategy acquired an additional 7,420 Bitcoins, valued at $458.2 million, at an average price of $61,750 per Bitcoin.
MicroStrategy now holds a total of 252,220 Bitcoins, purchased at an average price of $39,266 per Bitcoin. This marks a 3% increase from the 244,800 BTC it held a week ago. The company’s Bitcoin holdings are currently generating nearly 60% profit.
MicroStrategy began its Bitcoin acquisition in August 2020 with an initial investment of $250 million. Despite experiencing ongoing losses, the company has consistently added to its Bitcoin reserves and has no intention of selling.
Alongside major players like MicroStrategy, MARA, Tesla, and Tether, which continue to follow periodic Bitcoin acquisition strategies, several large companies and institutions, including Metaplanet, OneMedNet, Boyaa Interactive, and Semler Scientific, are increasingly viewing Bitcoin as a valuable investment asset.
