MicroStrategy has further increased its Bitcoin holdings with the purchase of 11,931 bitcoins for $786 million. This move represents a strategic financial decision for the company. The United States Securities and Exchange Commission (SEC) Form 8-K filed by MicroStrategy Incorporated confirms that the company completed a private offering of convertible senior notes on June 18, 2024.
The offering, which featured a 2.25% coupon and a conversion premium of approximately 35% over the U.S. composite volume-weighted average price of MicroStrategy’s Class A common stock, was well-received and upsized to a total of $800 million. The net proceeds from this offering amounted to approximately $786 million.
The significant increase in Bitcoin holdings by MicroStrategy has been highlighted by blockchain researcher Collin Brown. In a recent tweet, Brown noted that the company acquired 11,931 more bitcoins for $786 million, with an average purchase price of $65,883 per bitcoin. As of June 20, 2024, MicroStrategy now holds a total of 226,331 BTC, valued at $8.33 billion, with an average buy-in price of $36,798 per BTC.
This latest acquisition reaffirms MicroStrategy’s commitment to Bitcoin as a key asset in its financial strategy. It solidifies the company’s position as a major holder of Bitcoin and may influence other corporations and investors to consider similar investments in digital assets.
As of today, Bitcoin (BTC) is priced at $64,909.29, showing a slight recovery from yesterday’s 4.87% decline.