MicroStrategy Acquires 11,931 BTC ($786M) With Funds From Convertible Note

Bitcoin development firm MicroStrategy has acquired an additional 11,931 BTC for $65,883, taking its total holding to 226,331 BTC. In a statement released on Thursday, the software firm stated that it acquired the digital asset for $786 million.

With the purchase, MicroStrategy’s Bitcoin portfolio is now worth $14.75 billion, with just over 80% ($8.33 billion) of it as capital. MicroStrategy’s average entry price also increased from $35,383 to $36,798.

“MicroStrategy has acquired an additional 11,931 BTC for $786.0M using proceeds from convertible notes & excess cash for $65,883 per bitcoin. As of 6/20/24, MSTR hodls 226,331 BTC acquired for $8.33B at an average price of $36,798 per bitcoin,” MicroStrategy’s founder, Michael Saylor, posted on X.

Bitcoin Acquired From Convertible Notes

MicroStrategy revealed in a blog post that the newly-acquired Bitcoin was the proceeds of the convertible senior note auctioned earlier in June. The initial offering was $500 million, but the firm announced it closed the offering with $800 million realized during the period.

The convertible senior note raised bears with it 2.25% interest per annum, which can be paid in arrears bi-annually on June 15 and December 15. The firm will start repaying investors on June 15, 2032, and may begin redeeming the notes on June 20, 2029.

MicroStrategy has raised several convertible notes to acquire more Bitcoin in the past, demonstrating its belief in the digital asset’s investibility. Saylor has predicted that Bitcoin will trade at $1 million in the future.

Long-Term Investments

Long-term investments of such magnitude underscore MicroStrategy’s view of Bitcoin as a digital asset that has come to stay. Bitcoin is largely viewed as digital gold and a proper hedge against inflation.

MicroStrategy’s Saylor has stated that Bitcoin’s core characteristics mean the crypto asset will continue to go parabolic. Analysts have predicted that Bitcoin will hit at least $100,000 by the end of the year and $200,000 by 2025.