- MicroStrategy recently purchased an additional 9,245 BTC for $623 million, bringing their total Bitcoin holdings to over 214,000 BTC worth $6 billion in unrealized profit
- The company funded the purchase through a $592.3 million convertible debt offering and $30.7 million in excess cash reserves
- MicroStrategy plans to repay the debt before 2030 by allowing investors to swap the cash for MicroStrategy shares under certain conditions, receiving 0.43 shares per $1,000 lent
Michael Saylor‘s MicroStrategy has continued aggressively accumulating Bitcoin, purchasing over 9,000 BTC this week alone. This brings the company’s total holdings to over 1% of Bitcoin’s total supply.
Recent 9,245 BTC Purchase
Earlier this week, MicroStrategy secured $623 million to purchase an additional 9,245 Bitcoins. This latest purchase brings their total Bitcoin holdings to 214,246 BTC, with an average purchase price of $35,160 per Bitcoin. In total, MicroStrategy has spent $7.5 billion on Bitcoin.
With over 1% of the total Bitcoin supply, MicroStrategy’s holdings are now worth approximately $6 billion in unrealized profit. Michael Saylor announced the purchase on Twitter, stating that the company acquired the BTC using proceeds from convertible notes and excess cash reserves.
Funding Through Convertible Notes
The funding for this substantial acquisition came from two sources – $592.3 million was secured through the company’s latest convertible debt offering and the remaining $30.7 million was allocated from surplus cash reserves.
However, following the announcement of this strategic move and the completion of a $603.7 million convertible debt offering, MicroStrategy’s stock value dropped 13% on Tuesday.
Repayment Plan
MicroStrategy plans to pay back its borrowed money in a unique way before September 15, 2030. The company plans to allow investors to swap the cash it lent for MicroStrategy’s shares under certain conditions.
Initially, for every $1,000 lent to the company, investors receive 0.43 of a MicroStrategy share. This means lenders could choose to receive shares worth roughly $2,327 instead of cash, if specific rules are met.
Conclusion
MicroStrategy continues to aggressively accumulate Bitcoin, now holding over 1% of the total supply. It plans to fund these purchases through convertible debt offerings, with a unique share-swap structure for repayment. Despite a drop in stock price following the announcements, MicroStrategy remains committed to its Bitcoin strategy.
