MicroStrategy's $786 Million Bitcoin Acquisition Underscores Aggressive Strategy $BTC

MicroStrategy, the prominent American software and business intelligence firm, has once again made headlines with its latest substantial Bitcoin purchase. Between April 27 and June 19, 2024, the company acquired 11,931 BTC, investing approximately $786 million at an average price of $65,883 per Bitcoin. This bold move reaffirms MicroStrategy’s unwavering commitment to its Bitcoin investment strategy.

MicroStrategy’s Aggressive Bitcoin Expansion: Latest Purchase and Strategic Outlook

According to a recent 8-K filing with the Securities and Exchange Commission (SEC), MicroStrategy utilized funds from a private offering of convertible senior notes and surplus cash reserves to finance this acquisition. This offering, completed on June 18, 2024, generated $800 million. The notes were issued with a 2.25% coupon rate and featured a 35% conversion premium over the average price of MicroStrategy's class A common stock. This total includes the option exercised by initial purchasers to buy an additional $100 million of notes.

Michael Saylor, MicroStrategy’s founder and chairman, provided an update on the firm’s Bitcoin holdings following this acquisition.

“As of June 20, 2024, MicroStrategy holds 226,331 BTC, acquired for approximately $8.33 billion at an average purchase price of $36,798 per Bitcoin,” Saylor stated.

Recent reports from BeInCrypto highlighted that just last week, MicroStrategy announced a strategic initiative to further increase its Bitcoin holdings, unveiling a $500 million offering of convertible senior notes due in 2032. This recent purchase solidifies MicroStrategy’s status as the public company with the largest Bitcoin holdings, accounting for roughly 1% of the total Bitcoin supply.