MicroStrategy Buys Another 12,000 BTC After Raising Over $800M From Convertible Notes

Business intelligence firm MicroStrategy has completed a $800 million fundraising effort to purchase additional Bitcoin (BTC).

The company also used some excess cash and acquired 12,000 BTC, with its total holdings now well above 200,000 BTC.

MicroStrategy has acquired an additional 12,000 BTC for ~$821.7M using proceeds from convertible notes & excess cash for ~$68,477 per #bitcoin. As of 3/10/24, $MSTR hodls 205,000 $BTC acquired for ~$6.91B at average price of $33,706 per bitcoin. https://t.co/YayyKtpz8d

— Michael Saylor (@saylor) March 11, 2024

• According to a press release, MicroStrategy raised the funds through a private offering of senior unsecured convertible notes bearing an interest rate of 0.625% per annum.
• The announcement comes less than a week after MicroStrategy founder and executive chairman Michael Saylor revealed the firm was looking to raise $600 million through the convertible notes for the purpose of expanding its BTC reserves further.
• The aggregate principal amount of the notes sold in the offering was $800 million, including a $100 million aggregate principal amount of notes issued pursuant to an option to purchase.
• After deducting the initial purchasers’ discounts, commissions, and estimated offering expenses, the net proceeds from the sale of the notes arrived at $782 million.
• Minutes later, Saylor published the update indicating that the firm had acquired an additional 12,000 BTC for just shy of $822 million.
• This brought the NASDAQ-listed intelligence giant’s overall stash to 205,000 BTC, bought at an average price of $33,706 per one. With Bitcoin’s current price tag of over $71,000, MicroStrategy’s BTC unrealized profit is around 2x.

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