MicroStrategy Acquires 9,245 BTC, Bringing Total Holdings to 214,246 BTC
On Tuesday, MicroStrategy announced that it has acquired an additional 9,245 BTC for approximately $623.0 million. This purchase was made using proceeds from convertible notes and excess cash. With this acquisition, MicroStrategy now holds a total of 214,246 BTC. This represents more than 1.0% of the total 21 million Bitcoin that will ever exist, making it a significant milestone for both MicroStrategy and the crypto community.
The CEO of MicroStrategy, Michael Saylor, shared this news on X (formerly Twitter), stating that the company acquired the additional BTC for an average price of $67,382 per bitcoin. He also mentioned that as of March 18, 2024, MicroStrategy has acquired these bitcoins for approximately $7.53 billion at an average price of $35,160 per bitcoin.
The funding for this acquisition came from a private offering of convertible senior notes. The offering concluded with an upsized aggregate principal amount of $603.75 million. It attracted substantial interest and led to oversubscription, resulting in the exercise of an option by initial purchasers to buy an additional $78.75 million worth of notes.
According to MicroStrategy’s official press release, the offering included a 0.875% coupon and had an approximately 40% conversion premium over the US composite volume weighted average price of MicroStrategy’s class A common stock.
The convertible notes have a maturity date in 2031 and offer flexibility to holders with rights for early repurchase and conversion into cash or shares of MicroStrategy’s class A common stock under specific conditions. This reflects MicroStrategy’s sophisticated approach to capital management and its bullish outlook on Bitcoin.
The Bitcoin Community Reacts
The crypto community has responded positively to MicroStrategy’s latest acquisition. Bitcoin Munger commented on the news, stating that Saylor is like a kid in a candy store with the current dip in the market. Other prominent figures such as Dylan LeClair and WhalePanda have also acknowledged the company’s significant market position.
Dylan LeClair congratulated Saylor and MicroStrategy for holding more than 1% of all bitcoins in existence, calling it legendary. WhalePanda added a sarcastic comment, thanking weak hands for contributing to Saylor’s success.
MicroStrategy’s aggressive accumulation of BTC demonstrates its confidence in the digital currency as a viable investment asset. This milestone of holding more than 1% of all BTC’s in existence is a monumental step for Saylor.
In a recent interview, Saylor made it clear that he has no plans to sell BTC. He believes that Bitcoin is the highest form of property and the best investment asset. He stated, “Whoever gets the most Bitcoin wins. There is no other end game.”
At the time of writing, BTC is trading at $63,723.
Hot Take: MicroStrategy’s Ongoing Bitcoin Accumulation
MicroStrategy continues to make headlines with its ongoing accumulation of Bitcoin. With the recent acquisition of an additional 9,245 BTC, the company now holds over 214,000 BTC, representing more than 1% of all bitcoins that will ever exist.
This move by MicroStrategy not only demonstrates its confidence in Bitcoin but also has significant implications for the market. Here are some key takeaways from this development:
- MicroStrategy’s aggressive accumulation strategy showcases its bullish outlook on Bitcoin as an investment asset.
- The company’s ability to raise substantial funds through a private offering of convertible senior notes highlights its strong financial position and market appeal.
- The crypto community has praised MicroStrategy’s latest acquisition, with prominent figures commending the company for its market position and success.
- This milestone of holding more than 1% of all BTC’s in existence is a significant achievement for MicroStrategy and further solidifies Bitcoin’s position as a valuable digital asset.
Overall, MicroStrategy’s ongoing Bitcoin accumulation reinforces the growing acceptance and adoption of cryptocurrencies in the mainstream financial world. As more companies follow MicroStrategy’s lead, Bitcoin’s value and significance are likely to continue rising.
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