MicroStrategy Buys 7,420 BTC After $1.01B Convertible Note Offering

Shortly after the completion of its senior convertible note offering, the business intelligence company MicroStrategy announced it has bagged more bicoin (BTC). The pro-crypto firm said it acquired 7,420 BTC (valued at $458.4 million) at an average price of $61,750.

MicroStrategy Continues BTC Buying Spree

The latest purchase pushed MicroStrategy’s Bitcoin stash to 252,200 BTC, representing 1.27% of bitcoin’s circulating supply. MicroStrategy has established a comfortable lead over Grayscale’s 221,649 BTC and is only toppled by BlackRock’s 357,550 BTC.

With the September 19 acquisition, which was its second acquisition for the month, MicroStrategy has achieved a Bitcoin yield of 17.8% year-to-date. The Bitcoin development company now sits at an unrealized profit of almost $6 billion after spending $9.9 billion to acquire its bag at an average price of $39,226.

MicroStrategy’s Fourth Convertible Note Offering

The $458.4 million MicroStrategy used to purchase bitcoin was part of the funds raised from the convertible note offering. Notably, the software firm raised $1.01 billion from its 0.65% convertible note due in 2028. In an announcement on Friday, the firm stated it completed the debt offering on September 19.

MicroStrategy noted at the time that it would employ the raised funds to fully offset the $500 million outstanding convertible 6.125% senior secured notes due on September 26. The software firm noted plans to use any outstanding balance after the settlement to buy more bitcoin, a ploy it has actualized.

Notably, the firm stated that its net realized funds were $997.4 million. It came to this figure after deducting the former purchaser’s discount and other offering expenses. The total funds realized were also more than the $875 million it announced it was looking to raise.

MicroStrategy stated that it sold the notes to accredited investors according to Rule 144A under the Securities Act. At the debt’s maturity, holders can convert their notes at the rate of 5.4589 shares of MicroStrategy’s class A common shares per $1,000 of the debt note. Investors can opt for a cash settlement or a combination of both.

Interestingly, MicroStrategy publicly announced four days ago that it wanted to raise $700 million. Yesterday, the firm raised the convertible note offering to $875 million, and it exceeded its targeted threshold in no time. This signals increased investor traction towards MicroStrategy’s Bitcoin strategy.