MicroStrategy raises $1 billion via latest debt offering, reveals it bought 7,420 Bitcoin this week MicroStrategy raises $1 billion via latest debt offering, reveals it bought 7,420 Bitcoin this week
Last week, the Michael Saylor-led comapny purchased over 18,000 BTC for more than $1 billion.
2 min read
Updated: Sep. 20, 2024 at 4:15 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
MicroStrategy, in a Sept. 20 filing with the US SEC, declared the acquisition of 7,420 BTC for $458.2 million at an average price of $61,750 per Bitcoin between Sept. 13 and Sept. 19.
According to the SEC filing, the firm used proceeds from its recent senior notes offering, which raised $1.01 billion, to fund the purchase. Originally targeting $700 million in debt notes, MicroStrategy increased the offering to $875 million due to high demand.
The acquisition follows the firm’s recent purchase of approximately 18,300 BTC for over $1 billion, financed via selling more than 8 million company shares.
These acquisitions have brought the company’s total Bitcoin holdings to 252,220 BTC, purchased for a combined $9.90 billion at an average price of $39,266 per Bitcoin, including fees and expenses.
Data from SaylorTracker indicates that MicroStrategy’s total Bitcoin holdings are currently valued at $15.84 billion, reflecting an unrealized profit of roughly $6 billion.
The Michael Saylor-led company also reported a quarterly Bitcoin yield of 5.1%, with a year-to-date yield of 17.8%.
Following the news, MSTR was up 0.18% as of press time, according to Yahoo Finance data.
Growing interest in MicroStrategy ETFs
MicroStrategy’s ongoing Bitcoin acquisitions coincide with a surge in interest in the firm’s exchange-traded funds (ETFs).
According to Bloomberg Intelligence ETF analyst Eric Balchunas, two recently launched leveraged MicroStrategy ETFs are among the most volatile in US history and are attracting significant attention.
Balchunas noted that the long MicroStrategy ETF recorded $2 million in volume on its first day and was on track to reach $10 million by midday on Sept. 19. He highlighted the fund’s early successes compared to typical ETF launches and noted that “only like 1-2% of ETF launches see this kind of volume this early.”
Speaking on these impressive numbers, Greg King, the founder of Osprey Funds, stated that the ETFs were “one of the most leveraged ways to play BTC” in the current market.
Notably, this isn’t the first leveraged MicroStrategy fund. Defiance ETFs launched a 1.75x MicroStrategy ETF on Aug. 15, which recently surpassed $200 million in assets.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
MicroStrategy
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software.
Michael Saylor is the Executive Chairman, founder, and principal shareholder of MicroStrategy.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.