MicroStrategy Bought 11,931 More Bitcoin For $786 Million

MicroStrategy, a leading business intelligence and software company, has continued its steadfast commitment to Bitcoin by purchasing an additional 11,931 BTC at a total cost of $786 million.

On June 18, MicroStrategy completed a private offering of convertible senior notes, which included a 2.25% coupon and an approximately 35% conversion premium over the U.S. composite volume weighted average price of MicroStrategy’s class A common stock. The offering was well received in the marketplace and upsized to a total of $800.0 million in aggregate principal amount, MicroStrategy stated. This amount included the exercise by the initial purchasers of their option to purchase $100.0 million of additional notes, resulting in net proceeds from the offering to MicroStrategy to be approximately $786.0 million.

“On June 20, 2024, MicroStrategy announced that, during the period between April 27, 2024 and June 19, 2024, MicroStrategy acquired approximately 11,931 bitcoins for approximately $786.0 million in cash, using proceeds from the Offering and Excess Cash (defined in our quarterly report on Form 10-Q for the three months ended March 31, 2024), at an average price of approximately $65,883 per bitcoin, inclusive of fees and expenses,” the company stated.

The company initially entered the Bitcoin market in August 2020, making an initial BTC investment of $250 million. Since then, they have consistently added to their Bitcoin holdings, creating a treasury reserve strategy that has garnered over 226,331 bitcoin worth more than $14.9 billion at the time of writing.

“As of June 20, 2024, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 226,331 bitcoins, which were acquired at an aggregate purchase price of approximately $8.33 billion and an average purchase price of approximately $36,798 per bitcoin, inclusive of fees and expenses,” MicroStrategy concluded.