Michael Saylor, founder of MicroStrategy, has announced plans for additional Bitcoin purchases despite the ongoing surge in its price.
On the 18th, MicroStrategy issued an official statement revealing its intention to raise funds through the issuance of a 0% interest convertible note, specifically for the purpose of buying more Bitcoin. The company aims to raise $1.75 billion through this convertible note issuance.
A convertible note is a type of corporate bond similar to a convertible bond, allowing investors to receive either cash or company shares, including accrued interest, after a specified period.
The announcement of the convertible note issuance follows MicroStrategy’s recent disclosure of a record-breaking Bitcoin purchase, which has garnered significant attention.
According to the "8-K" filing submitted to the U.S. Securities and Exchange Commission (SEC) on the 18th, MicroStrategy spent $4.6 billion from November 11 to November 17 to purchase 51,780 BTC. The average purchase price was approximately $88,627 per Bitcoin.
With this purchase, MicroStrategy’s total Bitcoin holdings have now reached 331,200 BTC, making it the largest corporate holder of Bitcoin. The company's overall average Bitcoin acquisition cost is officially reported as $39,292 per Bitcoin.
Michael Saylor transformed MicroStrategy into a "Bitcoin acquisition company" in 2020 and has since continuously accumulated Bitcoin.
In tandem with the recent Bitcoin rally, MicroStrategy’s stock price surged by 13% on the 18th, closing at $384.79.
