MicroStrategy increased its Bitcoin holdings to 205,000 BTC, acquiring an additional 12,000 BTC for $821.7 million, using proceeds from its recent $800 million convertible note offering.
MicroStrategy, the business intelligence firm led by Bitcoin bull Michael Saylor, has further cemented its position as one of the largest corporate holders of Bitcoin. The company announced that it had acquired an additional 12,000 BTC between February 26 and March 10, 2024 at an average price of $68,477 per Bitcoin, including fees and expenses.
On February 6, 2024, MicroStrategy announced an increase in its Bitcoin holdings to 190,000 BTC in Q4 2023. This increase was mainly due to the acquisition of 31,755 Bitcoins for $1.25 billion or an average price of $39,411 per coin from the end of the third quarter. As a result, the total investment in Bitcoin rose to $5.93 billion, an average of $31,224 per BTC. This is the 13th consecutive quarter of portfolio growth and the largest quarterly gain in three years. The company reported a 23% increase in subscription sales despite a 6% year-over-year decline in total revenue. This highlights the company’s strategic investments, dedication to innovation and focus on shareholder value through its distinctive operating structure and Bitcoin-centric strategy.
The latest purchase, totaling approximately $821.7 million, was primarily funded by the proceeds of MicroStrategy’s latest convertible senior notes supply. The company successfully completed the offering of $800 million of 0.625% convertible senior notes due 2030, which was increased from the initial offering size due to strong demand from institutional investors. Net proceeds from the offering were approximately $782 million.
With this additional investment, MicroStrategy’s total Bitcoin holdings have now reached an impressive 205,000 BTC. The company’s total purchase price for the bitcoin treasury was approximately $6.91 billion, with an average purchase price of $33,706 per bitcoin, including 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 defender of bitcoin, often emphasizing its role as a hedge against inflation and a store of value in an increasingly digital world.
The move comes amid a period of heightened institutional interest in Bitcoin and others cryptocurrencies. As more corporations and institutional investors allocate some of their coffers to digital assets, mainstream Bitcoin adoption 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 bring long-term benefits to the company and its shareholders.
As MicroStrategy continues to lead the charge in enterprise 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 his control, MicroStrategy’s Bitcoin holdings are worth approximately $14 billion at current market prices, a significant portion of the company’s total market capitalization.
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