Crypto News – MicroStrategy Increases Bitcoin Holdings to 252,220 BTC with $458M Purchase
Crypto News – Nasdaq-listed software company MicroStrategy (MSTR) has once again increased its bitcoin (BTC) holdings, continuing its strategy of adopting the cryptocurrency as a corporate treasury asset. Between September 13 and 19, the company purchased 7,420 bitcoin at an average price of $61,750, for a total cost of approximately $458.2 million.
Upsizing Debt Offering to Fuel Bitcoin Acquisition
This latest bitcoin acquisition was financed through the proceeds of a convertible note issuance. Earlier in the week, MicroStrategy had announced a $700 million principal offering, but the firm decided to upsize this figure to $1.01 billion by Thursday, following investor interest. The company filed the information with the U.S. Securities and Exchange Commission (SEC) on Friday, confirming that the proceeds were used to acquire the 7,420 BTC.
Largest Corporate Holder of Bitcoin
MicroStrategy, under the leadership of Executive Chairman Michael Saylor, has become the largest corporate holder of bitcoin since it started acquiring the asset back in 2020. With this latest purchase, the company’s total bitcoin holdings now stand at 252,220 BTC, valued at nearly $16 billion at current market prices. Over the years, MicroStrategy has spent approximately $9.9 billion to build this position, with an average acquisition price of $39,266 per bitcoin.
Market Reaction: Shares and Bitcoin Price Decline
Despite the ambitious strategy, MicroStrategy’s shares (MSTR) were down 1.5% following the announcement, reflecting the general downturn in the U.S. equity markets and a slight dip in bitcoin prices. Both traditional stocks and cryptocurrencies experienced losses on the same day.
Other Companies Following MicroStrategy’s Footsteps
MicroStrategy’s approach of using debt to accumulate bitcoin has started to influence other public companies. Recently, firms like Semler Scientific, Marathon Digital, and Japanese investment adviser Metaplanet have also issued debt as part of their efforts to build bitcoin reserves. This trend suggests that more institutions are looking to follow in MicroStrategy’s footsteps, leveraging debt markets to adopt bitcoin as part of their financial strategy.
FAQ
How much Bitcoin did MicroStrategy buy between September 13 and 19?
MicroStrategy purchased 7,420 Bitcoin between September 13 and 19, 2024, at an average price of $61,750.
How did MicroStrategy finance its latest Bitcoin acquisition?
The company financed the acquisition through a $1.01 billion convertible note offering, which was upsized from an initial $700 million offering due to strong investor interest.
Leave a comment