MicroStrategy’s Bitcoin Stash Grows to 226,331 BTC with Latest $786M Purchase

• MicroStrategy acquires 11,931 BTC for $786M, raising its total to 226,331 BTC at an average cost of $36,798 per Bitcoin.
• MicroStrategy’s $800M convertible notes offering will mature in 2032, with a 2.25% interest rate, payable semi-annually.
• Bitcoin trades 1.46% higher at $65,995, with MicroStrategy’s stock price surging by 2.35% in pre-market trading.

MicroStrategy, led by Executive Chairman Michael Saylor, has improved its Bitcoin portfolio by acquiring an additional 11,931 Bitcoins. This purchase, amounting to approximately $786 million, was made using proceeds from convertible notes and excess cash. The acquisition price averaged around $65,883 per Bitcoin, reflecting the company’s ongoing commitment to its Bitcoin investment strategy.

Details of the Acquisition

Michael Saylor recently announced on X that MicroStrategy now holds a total of 226,331 Bitcoins. The total investment stands at roughly $8.33 billion, with an average acquisition cost of $36,798 per Bitcoin. This latest purchase has given a notable push to the Bitcoin price, which is currently trading 1.46% higher at $65,016.93, and has helped elevate Bitcoin’s market capitalization to $1.3 trillion.

Financing Through Convertible Notes

Just a week before this purchase, MicroStrategy revealed its $800 million convertible notes offering. The notes, maturing in 2032, carry an interest rate of 2.25%, payable semi-annually starting December 15, 2024. These senior, unsecured obligations can be converted into cash, MicroStrategy class A common stock, or a combination of both, subject to specific conditions before December 15, 2031.

Market Reactions and Projections

The announcement of the Bitcoin purchase has positively impacted MicroStrategy’s stock price. MicroStrategy shares have surged by 2.35%, surpassing the $1,500 mark. Since the start of 2024, the company’s stock has seen a remarkable increase of over 114%. Notably, MicroStrategy’s stock performance has outpaced Bitcoin itself, with the company’s shares achieving a one-year gain of 338% compared to Bitcoin’s 145%.

Future Implications for Bitcoin Prices

The Bitcoin market has experienced some resistance around the $66,000 mark, driven by substantial selling activity. However, market analysts have speculated that MicroStrategy’s continued investment in Bitcoin, particularly through its convertible notes, could drive the cryptocurrency’s price towards $72,000. Data from CoinGlass suggests that if Bitcoin approaches $70,000, approximately $1.67 billion in short positions could be liquidated, potentially amplifying upward price movements.