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MicroStrategy Bolsters Bitcoin Reserves with 11,931 New BTC Purchase to 226,331

  • MicroStrategy’s latest acquisition increases its Bitcoin holdings to 226,331 BTC.
  • The purchase of 11,931 bitcoins for $786 million signifies a strategic financial move.

According to the United States Securities and Exchange Commission (SEC) Form 8-K filed by MicroStrategy Incorporated, the company completed a private offering of convertible senior notes on June 18, 2024.

This offering, featuring 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 in aggregate principal amount. The net proceeds from this offering amounted to approximately $786 million.

Significant Bitcoin Boost

In line with CNF’s previous update on MicroStrategy’s Bitcoin buying spree, Collin Brown, a blockchain researcher, highlighted the massive BTC boost in a recent tweet. He noted that MicroStrategy had acquired 11,931 more bitcoins for $786 million, averaging $65,883 per bitcoin.

As of June 20, 2024, the company holds 226,331 BTC, totaling $8.33 billion with an average buy-in of $36,798 per BTC.

Strategic Financial Move

Between April 27, 2024, and June 19, 2024, MicroStrategy announced that it acquired approximately 11,931 bitcoins for around $786 million in cash. This acquisition utilized proceeds from the offering and excess cash, at an average price of approximately $65,883 per bitcoin, inclusive of fees and expenses.

Further, MicroStrategy, along with its subsidiaries, held an aggregate of approximately 226,331 bitcoins. These bitcoins were acquired at an aggregate purchase price of around $8.33 billion, with an average purchase price of approximately $36,798 per bitcoin, inclusive of fees and expenses.

Implications and Future Outlook

This significant acquisition bolsters MicroStrategy’s position as a major holder of Bitcoin, reflecting its continued strategy of investing heavily in the cryptocurrency. The implications of this move include a reinforced commitment to Bitcoin as a key asset in the company’s financial strategy, potentially influencing other corporations and investors to consider similar investments in digital assets.

As of today, Bitcoin (BTC) is priced at $64,909.29, with a decrease of 2.47% in the past week, showing a slight recovery from yesterday’s 4.87% decline, as reported by CNF in the topic of the Cash-and-Carry Strategy dominating the market. See BTC price chart below.

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