MicroStrategy Purchases 11,931 Bitcoin for $786 Million in Latest Acquisition
MicroStrategy, a prominent business intelligence and software company, has recently made a significant investment in Bitcoin by acquiring an additional 11,931 Bitcoins for a total of $786 million. This move showcases the company’s continued interest and confidence in the leading cryptocurrency.
The acquisition was made possible through a private offering of convertible senior notes on June 18th, 2024. These notes carried a 2.25% coupon and a substantial 35% conversion premium over the U.S. composite volume-weighted average price of MicroStrategy’s class A common stock. The offering was upsized to reach a total of $800 million in aggregate principal amount, with initial purchasers exercising their option to purchase an additional $100 million in notes. This resulted in net proceeds of approximately $786 million for MicroStrategy.
Between April 27th, 2024, and June 19th, 2024, MicroStrategy utilized these funds to acquire around 11,931 Bitcoins for approximately $786 million in cash. The average price per Bitcoin stood at about $65,883, inclusive of associated fees and expenses. This strategic purchase was funded by the proceeds from the offering and surplus cash reserves.
MicroStrategy initially ventured into the realm of Bitcoin investments in August 2020 with an initial allocation of $250 million. Since then, the company has consistently bolstered its Bitcoin holdings. As of June 20th, 2024, MicroStrategy and its subsidiaries collectively held approximately 226,331 Bitcoins. These digital assets were acquired at a total cost of about $8.33 billion, with an average price per Bitcoin standing at approximately $36,798, inclusive of fees and expenses.
This move underscores MicroStrategy’s commitment to diversifying its treasury holdings and leveraging Bitcoin as a store of value. The company’s strategic approach to cryptocurrency investments continues to position it as a key player in the evolving financial landscape.
