MicroStrategy, the largest public holder of Bitcoin (BTC), has marked another significant milestone by acquiring 11,931 BTC for $786 million. Michael Saylor, the founder and chairman of MicroStrategy, announced the company’s massive Bitcoin accumulation, which was “using proceeds from convertible notes and excess cash.”
MicroStrategy’s Massive Bitcoin Accumulation
Reportedly, the recently added Bitcoins bring MicroStrategy’s total BTC holdings to 226,331 tokens, worth $15 billion, at the cryptocurrency’s current price. The platform’s Bitcoins were purchased at an average price of $36,798 per token. Since MicrosStrategy’s first purchase of Bitcoin in 2020, the company’s Bitcoin portfolio has grown nearly 10x.
MicroStrategy Boosts Bitcoin Holdings Amid Market$800M Convertible Note Offerings
As per Saylor’s X post, the recent Bitcoin purchase followed MicroStrategy’s $800 million convertible note offerings to institutional investors. Saylor wrote on X, “MicroStrategy completes $800 million offering of convertible notes at 2.25% coupon and 35% conversion premium MSTR.”
The platform shared a detailed overview of the move via its press release. Elaborating on the notion of the convertible notes, MicroStrategy cited,
The notes are unsecured, senior obligations of MicroStrategy, and bear interest at a rate of 2.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms.
Bitcoin’s Surge and MicroStrategy’s Stock Growth
Over the year, MicroStrategy’s stock has displayed an aggressive growth of 135%, with analysts suggesting another 80% growth on the horizon. Meanwhile, Bitcoin has exhibited a significant 57% uptick over the same period.
As of press time, Bitcoin is trading at $64,848, with a slight dip of 0.13% in one day. Over the past week and month, Bitcoin has shown notable declines of 4.01% and 3.17%, respectively. With a severe decrease of 25% in 24-hour trading volume, Bitcoin’s data shows investors’ dwindling interest in Bitcoin.
