MicroStrategy Acquires Additional 11,931 Bitcoin, Total Holdings Now Worth $14.9 Billion

by Nicholas Edwards · 20/06/2024

MicroStrategy adds 11,931 BTC to its holdings, now totaling 226,331 BTC worth approximately $14.9 billion. Learn about their latest acquisition and financial performance.

Bollywood Fever: Business intelligence firm and prominent corporate bitcoin holder MicroStrategy has announced the acquisition of an additional 11,931 BTC, spending approximately $786 million at an average price of $65,883 per bitcoin between April 27 and June 19. This acquisition was disclosed in a filing on Thursday.

With this latest purchase, MicroStrategy now holds 226,331 BTC, valued at roughly $14.9 billion. The company’s total bitcoin holdings were acquired at an average price of $36,798 per bitcoin, amounting to around $8.33 billion, inclusive of fees and expenses, according to the company’s founder and executive chairman, Michael Saylor.

This acquisition follows MicroStrategy’s purchase of 9,245 BTC for $623 million in March, and two smaller acquisitions, which brought the firm’s total holdings to over 1% of the total 21 million bitcoin supply for the first time.

MicroStrategy’s share price rose by 2.4% in pre-market trading Thursday morning to $1,505, according to TradingView. Despite being down 2% over the past month, the stock has gained an impressive 112% year-to-date. As of Tuesday’s close, the company’s market capitalization stood at $26.06 billion, with an enterprise value of $29.6 billion, according to Yahoo Finance data.

Bitcoin is currently trading at $66,009, reflecting a 1.4% increase over the past 24 hours, as per The Block’s bitcoin price page.

MicroStrategy Completes $800 Million Convertible Note Offering

The latest bitcoin acquisition was funded by the completion of 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, according to the filing.

Initially, MicroStrategy proposed a $500 million offering on June 13, which was subsequently upsized to $800 million due to a positive reception in the marketplace. The net proceeds from the offering totaled approximately $786 million and were used to finance the bitcoin acquisitions alongside excess cash.

MicroStrategy’s continued investment in bitcoin demonstrates the company’s confidence in the cryptocurrency’s long-term value proposition. As the firm bolsters its bitcoin holdings, it further cements its position as a leading corporate investor in the digital asset space.