MicroStrategy Inc., led by Bitcoin advocate Michael Saylor, has completed a $1.01 billion debt offering, using the proceeds to buy 7,420 Bitcoin worth approximately $458.2 million. This move reinforces the company’s ongoing strategy of expanding its already massive Bitcoin portfolio.
Key Highlights:
- Debt Offering to Buy More Bitcoin:
- MicroStrategy initially aimed to raise $700 million through the sale of Convertible Senior Notes, but high demand led to the offering being upsized to $1.01 billion.
- The proceeds from this issuance were earmarked for redeeming previous debt and purchasing Bitcoin.
- Bitcoin Acquisition:
- With an average purchase price of $61,750 per Bitcoin, the company has expanded its Bitcoin holdings from 244,800 to 252,220 BTC.
- MicroStrategy has invested a total of $9.9 billion in Bitcoin at an average price of $39,266 per coin, now valuing its holdings at approximately $15.8 billion based on the current market price of $62,910.29.
- Strategic Significance:
- MicroStrategy’s bullish approach to Bitcoin, including multiple debt offerings, has made it one of the largest non-crypto entities holding significant amounts of Bitcoin.
- The company’s strategy reflects growing institutional interest in Bitcoin as an asset, as demonstrated by the 5.1% quarter-to-date (QTD) and 17.8% year-to-date (YTD) yield on its Bitcoin investments.
MicroStrategy’s continuous accumulation of Bitcoin through debt financing demonstrates its strong conviction in the long-term value of the cryptocurrency, further solidifying its position as a major player in the crypto investment space.
ENG WANJIKU
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