MicroStrategy has successfully completed an $800 million convertible note offering, which it plans to use to purchase additional Bitcoin and for general corporate purposes.
On June 20, MicroStrategy announced the completion of its previously disclosed offering of 2.25% convertible senior notes due in 2032. The total principal amount of the notes sold was $800 million, including $100 million issued under an option to purchase. The initial purchasers exercised their full purchase agreement on June 17, with an additional purchase on June 18.
After deducting the initial purchasers’ discounts, commissions, and estimated offering expenses, the net proceeds from the note sale were approximately $786 million. MicroStrategy intends to use these funds to buy more Bitcoin and for other corporate needs.
In a separate statement, MicroStrategy revealed that it had acquired an additional 11,931 Bitcoin for $786 million, using proceeds from the convertible notes and excess cash. The average purchase price was $65,883 per BTC. As of June 20, MicroStrategy holds a total of 226,331 Bitcoin, acquired at an average price of $36,798 per BTC, amounting to approximately $8.33 billion.
MicroStrategy, one of the largest public holders of Bitcoin, continues to expand its cryptocurrency holdings through strategic financial moves like this convertible note offering.
Summary Review: MicroStrategy’s recent completion of an $800 million convertible note offering marks a significant move in its ongoing strategy to accumulate Bitcoin. With the net proceeds of approximately $786 million from the offering, MicroStrategy has further bolstered its Bitcoin holdings by acquiring an additional 11,931 BTC. This brings their total Bitcoin holdings to 226,331 BTC, valued at approximately $8.33 billion based on an average purchase price of $36,798 per BTC. This latest acquisition underscores MicroStrategy’s commitment to Bitcoin as a strategic asset and reflects their confidence in its long-term value. As the company continues to leverage financial instruments like convertible notes to expand its cryptocurrency portfolio, it remains a prominent player in the digital asset space, shaping the landscape for institutional adoption of Bitcoin.
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