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Nasdaq-listed Microstrategy has acquired 11,931 more bitcoins for $786 million, raising its total cryptocurrency holdings to 226,331 bitcoins, valued at $8.33 billion with an average purchase price of $36,798 per coin. The acquisition was funded through proceeds from a private offering of convertible senior notes that offer a 2.25% annual interest rate.
MSTR Now Hodls 226,331 Bitcoins
Software intelligence company Microstrategy (Nasdaq: MSTR) has announced another bitcoin purchase. Executive chairman Michael Saylor stated on social media platform X Thursday:
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.
In the company’s filing with the U.S. Securities and Exchange Commission (SEC), Microstrategy explained: “As previously disclosed, on June 18, 2024, Microstrategy Incorporated completed a private offering of convertible senior notes … Net proceeds from the offering to Microstrategy totaled approximately $786.0 million.”
In a separate announcement on Thursday, Microstrategy clarified: “The notes are convertible into cash, shares of Microstrategy’s class A common stock, or a combination of both, at Microstrategy’s election.”
The private offering of convertible notes targeted qualified institutional buyers under Rule 144A of the Securities Act. The senior unsecured notes have a 2.25% annual interest rate, payable semi-annually, maturing on June 15, 2032. From June 20, 2029, Microstrategy may redeem the notes if the stock price reaches 130% of the conversion price, with at least $75 million in notes remaining. Noteholders can require repurchase on June 15, 2029, or during certain fundamental changes, with an increased conversion rate for some events.
Microstrategy frequently sells convertible notes and uses the proceeds to purchase bitcoin for its treasury. In February, the company started referring to itself as the world’s “first bitcoin development company.” The Nasdaq-listed firm emphasized: “We are a publicly traded operating company committed to the continued development of the bitcoin network through our activities in the financial markets, advocacy, and technology innovation.”
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