Key Points
- MicroStrategy has procured an additional 12,000 Bitcoin (BTC) after successfully completing an $800 million notes offering.
- The business intelligence firm’s total Bitcoin holdings now stand at around 205,000, valued at $6.91 billion.
MicroStrategy, a leading business intelligence company, has boosted its Bitcoin holdings by acquiring an additional 12,000 BTC. This acquisition comes after the successful completion of an $800 million offering of convertible senior notes due in 2030.
On March 11, 2024, MicroStrategy revealed that it used the net proceeds from the notes offering, totaling approximately $782.0 million, along with excess cash to fund the additional Bitcoin purchases, totaling $821.7 million.
MicroStrategy’s Increasing Bitcoin Holdings
Michael Saylor, MicroStrategy’s former CEO, shared that the crypto assets were purchased at a price of $68,477 per BTC. With this latest acquisition, MicroStrategy’s total Bitcoin holdings are approximately 205,000 Bitcoins, valued at $6.91 billion. These assets were purchased at an average price of $33,706 per BTC.
MicroStrategy has consistently held its position as a leader among publicly traded firms in terms of bitcoin holdings. Before this recent purchase, the business intelligence firm held 193,000 bitcoins, acquired at an average price of $31,544 per BTC.
The US-based business intelligence company began its bitcoin accumulation journey in 2020, using it as a strategy to hedge against inflation and as an alternative to holding cash on its balance sheet. The company has continued to increase its BTC reserves, emerging as the largest holder among corporate entities.
Completion of $800 Million Notes Offering
MicroStrategy completed the note offerings, which were used to fund the acquisition of the 12,000 BTC, on March 8, 2024.
The offering involved MicroStrategy issuing $100 million aggregate principal amount of notes pursuant to an option to purchase. The option was fully exercised by initial purchasers on March 6, 2024, with the additional purchase completed on March 8, 2024.
The notes were sold in a private offering to qualified institutional buyers and constitute unsecured senior obligations of MicroStrategy.
They carry an interest rate of 0.625% per annum, with interest payable semi-annually on March 15 and September 15 of each year, starting on September 15, 2024. The notes are set to mature on March 15, 2030, unless earlier repurchased, redeemed, or converted according to their terms.
MicroStrategy has the option, under specific conditions, to redeem the notes for cash at a redemption price equal to 100% of the principal amount of the notes to be redeemed, along with any accrued and unpaid interest.
The company stated that the option is exercisable if the last reported sale price of its class A common stock has been at least 130% of the conversion price.
