Key Takeaways
- MicroStrategy uses $800M note offering to buy more Bitcoin, holds 205,000 BTC.
- The company's Bitcoin holdings were acquired at an average price of $33,706 per coin.
- MicroStrategy views Bitcoin as a dependable store of value and a key component of its treasury reserve strategy.
American software technology firm MicroStrategy has successfully completed a $800 million convertible note offering, with the funds raised being used to purchase an additional 12,000 Bitcoin (BTC).
This latest acquisition brings the company’s total Bitcoin holdings to 205,000 BTC, purchased at an average price of $33,706 per coin.
Details of the note offering
The note offering, announced on March 6 and completed on March 8, carries an interest rate of 0.625% per annum, payable semi-annually.
The notes are convertible into cash, MicroStrategy stocks, or a combination of both.
The initial conversion rate is set at 0.6677 shares per $1,000 principal amount, representing a premium of approximately 42.5% over the company’s stock price as of March 5, 2024.
MicroStrategy’s Bitcoin strategy
MicroStrategy’s decision to invest heavily in Bitcoin began in August 2020, with an initial investment of $250 million for 21,454 BTC.
Spearheaded by founder and chairman Michael Saylor, the company views Bitcoin as a dependable store of value and an attractive investment asset.
Since its first purchase, MicroStrategy’s Bitcoin holdings have increased significantly in value, reinforcing its strategy to make Bitcoin its principal holding in its treasury reserve.
