MicroStrategy spends $821 million to grow its Bitcoin hoard to 205,000 MicroStrategy spends $821 million to grow its Bitcoin hoard to 205,000
The latest Bitcoin acquisition was funded by its recent debt offering and came amid BTC's climb to a new all-time high.
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Updated: Mar. 11, 2024 at 5:34 pm UTC
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MicroStrategy has increased its Bitcoin stash to more than 200,00 after acquiring 12,000 Bitcoin for $821 million between Feb. 26 and Mar. 10, according to a Mar. 11 SEC filing.
This purchase was primarily financed by the net proceeds from its recent convertible debt offering, alongside excess cash reserves.
With this purchase, MicroStrategy has acquired more than 15,000 BTC for nearly $1 billion since the beginning of the year. As a result, the firm’s total BTC holding has risen to 205,000, acquired at an aggregate purchase price of roughly $6.91 billion, averaging about $33,706 per bitcoin.
Notably, the purchase is coming on the heels of BTC’s climb to a new all-time high of more than $72,000. At present rates, MicroStrategy’s BTC investment is worth approximately $14.7 billion.
The announcement spurred a nearly 10% surge in MicroStrategy shares during pre-market trading, reaching $1,560, according to Yahoo Finance data.
Institutional interest in MicroStrategy
Last week, the company disclosed plans to raise $600 million by issuing convertible senior notes to qualified institutional buyers at an annual interest rate of 0.625%. It later raised the target to $700 million.
However, following overwhelming demand, the company said it upsized the offering to $800 million in aggregate principal amount, and its net proceeds totaled approximately $782.0 million.
The resounding success of the offering reflects the high institutional interest in MicroStrategy. The company’s pro-BTC stand predominantly attracts most investors, and its stocks provide indirect exposure to the flagship digital asset.
MicroStrategy’s executive chairman, Michael Saylor, recently emphasized that Bitcoin surpasses traditional assets like gold, equity, and real estate.
According to him:
“Bitcoin is Digital Property. It is superior to other investments such as Gold, Equity, or Real Estate because it is digital, available, global, ethical, & useful to millions of companies and billions of people.”
Saylor is a staunch BTC advocate and has previously said the company has no plans to sell its coins at any point because Bitcoin is the exit plan.
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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.