MicroStrategy Expanding Bitcoin Holdings, Preparing for Further Purchases

Sep. 23, 2024. 1 min. read.

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MicroStrategy, a business intelligence firm, is continuing its aggressive Bitcoin acquisition strategy, spending $458.2 million on September 20 to purchase approximately 7,420 Bitcoin (BTC). The Virginia-based company revealed this acquisition in a regulatory filing with the US Securities and Exchange Commission (SEC).

This recent move is part of a larger plan for MicroStrategy to grow its Bitcoin portfolio. The company recently priced $875 million worth of 0.625% Convertible Senior Notes, to be sold privately to institutional buyers. These notes, convertible into cash or MicroStrategy stock, generated $1.01 billion in total, with an additional $135 million raised from an option to purchase more notes. A portion of this money was used to buy Bitcoin at an average price of $61,750 per BTC.

“As of September 19, 2024, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 252,220 Bitcoins, acquired at a total price of approximately $9.90 billion, with an average purchase price of $39,266 per Bitcoin, inclusive of fees and expenses,” the SEC filing stated.

The company issued $700 million in convertible notes, part of which will be used to redeem $500 million in Senior Secured Notes and release collateral. This strategy allows MicroStrategy to expand its Bitcoin holdings while managing its existing debt.

“As of 9/19/2024, we hodl 252,220 BTC acquired for approximately $9.9 billion at an average price of around $39,266 per Bitcoin,” disclosed MicroStrategy founder Michael Saylor. MicroStrategy’s ongoing Bitcoin acquisition puts it in close competition with BlackRock, which holds 357,550 BTC.

Amid growing interest from corporations and even governments, Bitcoin is currently trading at $62,837, reflecting increasing demand in the market.

Source: MicroStrategy Purchases 7,420 More Bitcoin, Ready for Another Buying Round

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