Microstrategy has bought 12,000 more bitcoins after completing a $800 million convertible note offering. The Nasdaq-listed company now holds a total of 205,000 bitcoins, acquired for an average of $33,706 per coin. The note offering “was well received in the marketplace and upsized to a total of $800 million in aggregate principal amount,” the company revealed.
Microstrategy Buys 12,000 More Bitcoins
Microstrategy (Nasdaq: MSTR), which considers itself the world’s first bitcoin development company, announced Monday that it has acquired additional bitcoin with proceeds from the sale of convertible notes. Microstrategy’s executive chairman, Michael Saylor, detailed on social media platform X:
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Microstrategy has acquired an additional 12,000 BTC for ~$821.7M using proceeds from convertible notes & excess cash for ~$68,477 per bitcoin. As of 3/10/24, MSTR hodls 205,000 BTC acquired for ~$6.91B at average price of $33,706 per bitcoin.
In a Monday filing with the U.S. Securities and Exchange Commission (SEC), Microstrategy revealed details of its latest bitcoin purchase. The company used $781.1 million from its convertible note offering, along with $40.6 million in excess cash, to acquire 12,000 BTC between Feb. 26 and March 10. This translates to an average price of approximately $68,477 per bitcoin, inclusive of fees and expenses.
The SEC filing further shows that on March 8, Microstrategy completed a private offering of convertible senior notes, initially targeted at $600 million. The company explained that the note offering “was well received in the marketplace and upsized to a total of $800 million in aggregate principal amount,” adding: “This amount included the exercise by the initial purchasers of their option to purchase $100 million of additional notes. Net proceeds from the offering to Microstrategy totaled approximately $782.0 million.”
The company detailed that the notes are “unsecured, senior obligations of Microstrategy, and bear interest at a rate of 0.625% per annum.” The notes “will mature on March 15, 2030, unless earlier repurchased, redeemed, or converted in accordance with their terms,” Microstrategy added, noting that they are “convertible into cash, shares of Microstrategy’s class A common stock, or a combination of cash and shares of Microstrategy’s class A common stock, at Microstrategy’s election.”
Saylor recently doubled down on his bullish bitcoin stance, stating that BTC is superior to other asset classes. He expects capital to keep flowing into the cryptocurrency.
Source: https://news.bitcoin.com/microstrategy-boosts-bitcoin-holdings-to-205000-btc-after-800-million-capital-raise/