TL;DR
- MicroStrategy acquires an additional 12,000 BTC for over $821 million.
- The acquisition was made using funds from convertible notes and excess cash.
- MicroStrategy now holds a total of 205,000 BTC, purchased for around $6.91 billion.
MicroStrategy, the business intelligence firm, has strengthened its position in the cryptocurrency market by recently acquiring an additional 12,000 Bitcoin (BTC).
This purchase, made for a total of approximately $821.7 million, was carried out using funds generated by the convertible note offering and some of the company’s excess cash.
This strategic move by MicroStrategy highlights its continued confidence in Bitcoin (BTC) long-term potential as a store of value asset.
MicroStrategy has acquired an additional 12,000 BTC for ~$821.7M using proceeds from convertible notes & excess cash for ~$68,477 per #bitcoin. As of 3/10/24, $MSTR hodls 205,000 $BTC acquired for ~$6.91B at average price of $33,706 per bitcoin. https://t.co/YayyKtpz8d
— Michael Saylor⚡️ (@saylor) March 11, 2024
The acquisition of these 12,000 BTC brings the total amount of Bitcoin held by MicroStrategy to an impressive 205,000 BTC.
The firm, led by its founder and CEO, Michael Saylor, has been a pioneer in the institutional adoption of BTC.
This latest purchase demonstrates their strong commitment to the leading cryptocurrency and their belief in its ability to function as a reliable and profitable reserve asset.
The acquisition process was carried out through a combination of funds generated by the convertible note offering and surplus cash.
The convertible note offering, which generated a total of $800 million, attracted investors with an annual interest rate of 0.625%.
After deducting associated expenses, MicroStrategy obtained a total of $782 million in net funds, which were immediately used to acquire BTC.
With an average acquisition price of around $68,477 per BTC, MicroStrategy has expanded its Bitcoin portfolio significantly.
This continuous accumulation strategy reflects the company’s belief in the future valuation of BTC and its ability to deliver attractive returns over time.
Since its initial foray into Bitcoin, MicroStrategy has maintained an optimistic, long-term outlook
Throughout its journey, the company has accumulated a total of 205,000 BTC, at an average price of $33,706 per Bitcoin.
With the current price of Bitcoin surpassing $71,000, MicroStrategy has experienced an unrealized profit of approximately double its initial investment.
This latest development not only strengthens MicroStrategy‘s position as a key player in the cryptocurrency space, but also sends a clear signal to the market about confidence in Bitcoin as a top-class investment asset.
With its continued accumulation of Bitcoin, MicroStrategy is poised to reap the benefits of this strategic investment for years to come.
