- MicroStrategy purchased 7,420 bitcoin between September 13 and 19 for $458.2 million at an average price of $61,750 per BTC.
- The company upsized its convertible note offering to $1.01 billion from the initially planned $700 million, using the proceeds to acquire more bitcoin.
- With the latest purchase, MicroStrategy now holds 252,220 bitcoin worth nearly $16 billion at current prices, acquired at an average price of $39,266 per BTC for a total cost of $9.9 billion.
MicroStrategy, a Nasdaq-listed software company led by CEO Michael Saylor, has purchased more bitcoin to add to its corporate treasury. The company is a pioneer in using Bitcoin as a treasury asset.
Key Details of the Bitcoin Purchase
The company purchased 7,420 bitcoin between September 13 and 19 for approximately $458.2 million. The bitcoins were acquired at an average price of around $61,750.
MicroStrategy used the proceeds from its recent debt offering to finance the bitcoin purchase. Earlier in the week, the company had announced plans to issue $700 million of convertible senior notes. However, it upsized the offering to $1.01 billion of principal notes, according to a regulatory filing.
Accumulated Bitcoin Holdings
With its latest acquisition, MicroStrategy now holds approximately 252,220 bitcoin worth nearly $16 billion at current market prices. The company has been steadily accumulating bitcoin for its corporate treasury since 2020.
The average purchase price for all of MicroStrategy’s bitcoin is $39,266. The total cost of acquiring its bitcoin holdings so far is around $9.9 billion.
MicroStrategy still has approximately $889 million remaining from a previous $2 billion equity offering to purchase additional bitcoin.
Debt Offerings to Finance Bitcoin Purchases
MicroStrategy has pioneered the strategy of issuing debt to finance bitcoin purchases for its corporate treasury. Other public companies such as Marathon Digital have followed this strategy.
Earlier this week, MicroStrategy announced plans to raise $700 million through a convertible note offering. However, after upsizing the offering to $1.01 billion, the company now plans to use all of the proceeds to purchase bitcoin.
Conclusion
Led by CEO Michael Saylor, MicroStrategy continues to acquire bitcoin for its corporate treasury by issuing debt. With its latest purchase of 7,420 bitcoin, the company has accumulated over 250,000 bitcoin worth nearly $16 billion. MicroStrategy is pioneering the use of bitcoin as a corporate treasury asset.
