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In a bid to acquire more Bitcoin (BTC) at discounted prices, MicroStrategy Inc. (NASDAQ: MSTR) has announced that it completed its previously announced offering of 2.25 percent convertible senior notes with $800 million. The company will use the funds to acquire more Bitcoins mainly.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company noted.
MicroStrategy Joins Other Whales in Bitcoin Acquisition
MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
— Michael Saylor⚡️ (@saylor) June 20, 2024
MicroStrategy’s announcement to acquire more Bitcoins follows similar moves by other deep-pocketed investors seeking to tap into the flagship coin. Notably, MicroStrategy has announced that it has acquired an additional 11,931 BTC for around $786 million at an average price of about $65,883.
As a result, MicroStrategy now holds approximately 226,331 Bitcoins, worth around $15 billion based on the current BTC price of around $66k.
Bitcoin supply on cryptocurrency exchanges has been gradually dropping despite the notable selling pressure from miners. The heightened demand from institutional investors seeking to flee high inflation in fiat currencies and benefit from the ongoing macro bull run has helped Bitcoin hold above $65k.
Market Implication
The notable Bitcoin acquisition by MicroStrategy outstrips the $152 million net cash outflows from the US-based spot Bitcoin ETFs on Wednesday. As a result, the overall Bitcoin fundamentals have improved amid the recent crypto correction, which pushed Bitcoin below $65k.
If Bitcoin’s price continues to show bullish sentiment in the coming days, the flagship coin could reclaim the $67k support level and rally toward its all-time high.