MicroStrategy Doubles Down On Bitcoin With $786M Purchase

MicroStrategy MSTR on Thursday reaffirmed its dedication to Bitcoin BTC/USD by acquiring an additional 11,931 BTC for a total expenditure of $786 million.

What Happened: On June 18, the company concluded a private offering of convertible senior notes, featuring a 2.25% coupon and a 35% conversion premium over the U.S. composite volume-weighted average price of MicroStrategy’s class A common stock.

The offering was well-received, expanding to a total of $800 million in aggregate principal amount, which included the initial purchasers’ exercise of their option to purchase an additional $100 million of notes.

This led to net proceeds of approximately $786 million.

MicroStrategy announced on June 20 that between April 27, and June 19, it had acquired approximately 11,931 bitcoins for roughly $786 million in cash, utilizing the proceeds from the offering and excess cash.

This purchase was made at an average price of about $65,883 per bitcoin, inclusive of fees and expenses.

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Why It Matters: The company’s initial foray into Bitcoin occurred in August 2020 with an investment of $250 million.

Since then, MicroStrategy has steadily increased its Bitcoin holdings as part of a treasury reserve strategy.

This has resulted in a total accumulation of over 226,331 bitcoins, valued at more than $14.9 billion at the current market price.

As of June 20, 2024, MicroStrategy, along with its subsidiaries, held approximately 226,331 Bitcoin.

These were acquired at a total purchase price of around $8.33 billion, averaging approximately $36,798 per bitcoin, inclusive of fees and expenses.

What’s Next: For readers interested in the evolving landscape of digital assets, Benzinga’s Future of Digital Assets event on Nov. 19 will provide further insights into such significant developments in the crypto space.

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