The post MicroStrategy’s Bitcoin Bet Continues: $786M Spent on 11.9K BTC appeared on BitcoinEthereumNews.com.

MicroStrategy has further solidified its position as the largest corporate holder of Bitcoin by acquiring 11,931 BTC for $786 million, bringing its total holdings to 226,331 BTC valued at nearly $15 billion. Acquisition Details MicroStrategy, the largest corporate holder of Bitcoin (BTC), has acquired an additional 11,931 BTC for $786 million. The purchase was confirmed through a press release on Thursday morning and detailed in a United States Securities and Exchange Commission (SEC) Form 8-K filing. This acquisition brings the company’s total Bitcoin holdings to 226,331 BTC, worth approximately $14.4 billion at the current Bitcoin price of around $64,000. Funding the Purchase MicroStrategy completed a private offering of convertible senior notes to finance this acquisition on June 18, 2024. The offering initially aimed to raise $500 million but was upsized due to strong demand, eventually closing at $800 million in aggregate principal amount. The convertible notes feature a 2.25% coupon rate and a conversion premium of approximately 35% over MicroStrategy’s Class A common stock’s volume-weighted average price. Strategic Implications Led by Executive Chairman Michael Saylor, MicroStrategy has been a prominent advocate for Bitcoin since 2020. The company’s aggressive Bitcoin accumulation strategy is evident in this latest purchase, which follows a $623 million acquisition of 9,245 BTC in March through a similar debt issuance. This continued investment in Bitcoin underscores MicroStrategy’s commitment to the cryptocurrency as a key asset in its financial strategy. Blockchain researcher Collin Brown highlighted the scale of this latest purchase in a tweet,  “MicroStrategy’s massive BTC boost! They’ve snapped up 11,931 more bitcoins for $786M, averaging $65,883 each. As of 6/20/24, they hodl 226,331 BTC, totaling $8.33B with an average buy-in of $36,798 per BTC.” Market Impact MicroStrategy’s shares have significantly benefited from the firm’s Bitcoin acquisitions, rising roughly tenfold since the company began purchasing Bitcoin four…

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Filed under: News - @ June 22, 2024 9:08 pm