The growing influence of Bitcoin, the world’s largest crypto asset, has led an impressive number of financial institutions to embrace it, driven by the optimism to join the burgeoning industry. One notable player is MicroStrategy, which has championed the aggressive accumulation of the asset over the past years. 

Continuing its streak of acquisitions, the firm has once again made another significant purchase.

MicroStrategy’s Growing BTC Stash

Continuing its quest to bolster its holdings in Bitcoin, MicroStrategy Chairman Michael Saylor announced on Thursday, June 20, 2024, the acquisition of 11,931 Bitcoins.
Valued at approximately $786 million at the time of purchase, the new BTC purchase marks the latest addition to the firm’s already robust stash of 214,400 bitcoins, now bringing its total portfolio to 226,331.

Acquired at an average price of approximately $65,914 per bitcoin, this purchase follows a recent acquisition of 9,245 bitcoins between March 11 and March 18, positioning MicroStrategy’s total holdings at over 1% of the entire BTC supply.

This acquisition aligns with the firm’s recent declarations of its intent to further boost its holdings of the crypto market giant.

MicroStrategy: Convertible Notes Sale for More BTC

In a statement on June 13, 2024, the pro-Bitcoin firm announced its intention to offer $500 million in convertible senior notes as part of its efforts to raise funds for additional asset acquisition. 

The notes will mature in 2032 and be privately offered to institutional investors who meet specific criteria, including those deemed ‘qualified institutional buyers’ under Rule 144A of the Securities Act of 1933, subject to market and “other conditions.”

“The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms,” stated the firm.

MicroStrategy also emphasized that proceeds of the sale will bolster its Bitcoin treasury with an additional BTC acquisition, as well as funding general corporate purposes.

On the Flipside

MicroStrategy Chairman Michael Saylor has recently co-signed presidential election hopeful Donald Trump’s crypto vision.

At press time, Bitcoin (BTC) is trading at $64,803.

BTC’s current value marks approximately $6.33 billion in unrealized profit for Microstrategy.

Why This Matters

MicroStrategy’s latest Bitcoin acquisition significantly bolsters its holdings, solidifying its position as a major stakeholder in the industry.

Source : DailyCoin - Jun 20, 2024