MicroStrategy Boosts Bitcoin Holdings with $821 Million Acquisition
Business intelligence firm MicroStrategy has capitalized on its latest convertible debt offering, using the proceeds to increase its Bitcoin holdings by approximately 12,000 additional Bitcoins, valued at over $821 million. This move expands the company’s existing BTC portfolio to roughly 205,000 BTC, acquired for a total of $6.91 billion.
The debt offering, which closed on March 8, raised $781 million, enabling MicroStrategy to embark on its Bitcoin acquisition spree. Despite the higher premium per Bitcoin, averaging at $68,477, this purchase marks one of the company's notable acquisitions historically. This comes as Bitcoin itself has reached new all-time price highs, surpassing $72,000.
MicroStrategy disclosed these purchases in an SEC filing on Monday, detailing transactions made between February 26th and March 10th. The company recently concluded a $800 million convertible senior note offering on March 8th, injecting $782 million into its corporate reserves.
Out of the total raised funds, MicroStrategy allocated $781.1 million towards expanding its Bitcoin holdings. This significant acquisition occurred amid Bitcoin's ongoing surge in value, breaching $72,000 for the first time in the last 24 hours.
With this latest move, MicroStrategy now holds 205,000 Bitcoins, acquired for a total of $6.91 billion. This substantial investment reflects the company's continued confidence in Bitcoin as a strategic asset, under the leadership of its founder and former CEO, Michael Saylor.
Despite the volatile nature of Bitcoin's price, MicroStrategy remains steadfast in its acquisition strategy, as indicated during Monday's earnings call. With no indication of slowing down, the firm remains committed to accumulating Bitcoin as part of its long-term corporate strategy.