MicroStrategy has increased its Bitcoin holdings to 205,000 BTC, acquiring an additional 12,000 BTC for $821.7M using proceeds from its recent $800M convertible notes offering.
MicroStrategy, the business intelligence firm led by Bitcoin bull Michael Saylor, has further solidified its position as one of the largest corporate holders of Bitcoin. The company announced that it has acquired an additional 12,000 BTC between February 26 and March 10, 2024, at an average price of $68,477 per bitcoin, inclusive of fees and expenses.
On February 6, 2024, MicroStrategy announced an increase in their Bitcoin holdings to 190,000 BTC in Q4 2023. This increase was mostly due to the acquisition of 31,755 bitcoins for $1.25 billion, or an average price of $39,411 per coin, since the end of Q3. As a result, its total investment in Bitcoin climbed to $5.93 billion, averaging $31,224 per BTC. This is the portfolio’s 13th consecutive quarter of growth and the greatest quarterly gain in three years. The firm reported a 23% increase in subscription services sales despite a 6% yearly decline in overall revenues. This highlights the company’s strategic investments, dedication to innovation, and focus on shareholder value via its distinctive operational structure and Bitcoin-centric strategy.
The latest purchase, totaling approximately $821.7 million, was primarily funded by the proceeds from MicroStrategy’s recent convertible senior notes offering. The company successfully completed an $800 million offering of 0.625% convertible senior notes due in 2030, which was upsized from the initial offering size due to strong demand from institutional investors. The net proceeds from the offering amounted to approximately $782 million.
With this additional investment, MicroStrategy’s total Bitcoin holdings have now reached an impressive 205,000 BTC. The company’s aggregate purchase price for its Bitcoin treasury stands at approximately $6.91 billion, with an average purchase price of $33,706 per bitcoin, inclusive of fees and expenses.
MicroStrategy’s unwavering commitment to Bitcoin as a primary treasury reserve asset underscores its confidence in the long-term value and potential of the world’s largest cryptocurrency. The company’s CEO, Michael Saylor, has been a vocal advocate for Bitcoin, often emphasizing its role as a hedge against inflation and a store of value in an increasingly digital world.
The move comes amidst a period of heightened institutional interest in Bitcoin and other cryptocurrencies. As more corporations and institutional investors allocate a portion of their treasury to digital assets, the mainstream adoption of Bitcoin continues to gain momentum.
However, MicroStrategy’s Bitcoin-centric approach is not without its risks. The volatility of the cryptocurrency market and the company’s significant exposure to Bitcoin have raised concerns among some investors and analysts. Nevertheless, MicroStrategy remains confident in its strategy and believes that its investment in Bitcoin will yield long-term benefits for the company and its shareholders.
As MicroStrategy continues to lead the charge in corporate Bitcoin adoption, the company’s latest acquisition further cements its position as a major player in the crypto space. With 205,000 BTC now under its control, MicroStrategy’s Bitcoin holdings are worth approximately $14 billion at current market prices, representing a significant portion of the company’s overall market capitalization.
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