MicroStrategy, a prominent holder of Bitcoin (BTC), has successfully completed another round of convertible notes offering in order to acquire more BTC.
On June 20, MicroStrategy made an official announcement stating that the company has finalized the offering of 2.25% convertible senior notes due 2032, as previously planned.
The total principal amount of the notes sold in the offering was $800 million, which includes $100 million of notes issued through an option to purchase. According to the announcement, the initial purchasers fully exercised the purchase agreement on June 17, and an additional purchase occurred on June 18.
MicroStrategy used the proceeds from the sale of the notes, amounting to approximately $786 million after deducting discounts, commissions, and offering expenses, to acquire 11,931 BTC.
The company plans to utilize the net proceeds from the notes sale to acquire more Bitcoin and for general corporate purposes.
In a separate statement, MicroStrategy disclosed that it has purchased an additional 11,931 Bitcoin for $786 million using the proceeds from the convertible notes and excess cash, at a price of $65,883 per BTC. As of June 20, MicroStrategy now holds a total of 226,331 BTC, acquired at an average price of $36,798 per BTC, with a total investment of approximately $8.33 billion.
MicroStrategy, led by its founder Michael Saylor, is among the largest known holders of Bitcoin globally. The company entered the Bitcoin market in August 2020 with a purchase of $250 million worth of BTC. Since then, MicroStrategy has been consistently buying Bitcoin in batches, considering it as its “primary reserve currency”.
In the first quarter of 2024, MicroStrategy reported a net loss of $53.1 million, despite its substantial investments in Bitcoin, which has experienced significant price appreciation since early 2020. The company has yet to adopt the new digital asset fair value accounting standard, which would account for BTC price movement in market value.
Overall, MicroStrategy’s recent convertible notes offering and Bitcoin purchases reflect its ongoing commitment to accumulate and hold Bitcoin as a strategic asset.