Just In: MicroStrategy Issues $700M Debt to Ramp Up Bitcoin Holdings

• MicroStrategy’s $700M debt issuance highlights its ongoing strategy to aggressively increase its Bitcoin holdings, reinforcing its long-term bullish stance.
• CEO Michael Saylor remains unwavering in his belief in Bitcoin’s potential, using it as a key asset to secure MicroStrategy’s financial future despite market fluctuations.

According to a recent update by MicroStrategy shared by CNF, the company has steadily increased its Bitcoin (BTC) holdings, now owning 244,800 BTC, valued at $14 billion as of September 12, 2024. These acquisitions have been made through multiple purchases funded by proceeds from a sale agreement involving shares of its Class A common stock.

MicroStrategy signed a sale agreement with TD Securities on August 1, allowing it to sell shares up to $2 billion. By September 12, the company had raised $1.11 billion from the sale and used it to purchase 18,300 BTC at an average price of $60,408 per coin. Earlier this year, the company also bought 11,911 BTC for $786 million between April and June.

Michael Saylor’s Stance on Bitcoin

CEO Michael Saylor continues to emphasize Bitcoin’s importance as a strategic asset, revealing in a recent interview that he personally holds 17,732 BTC and has no plans to sell. Saylor believes Bitcoin is the ideal long-term investment, noting its potential to become the U.S. Bitcoin Strategic Reserve. He stated:

I have not sold any bitcoin, I keep acquiring more bitcoin. It’s a great capital investment asset for an individual, a family, an institution, a corporation, or a country. And I don’t see a better place to invest my money.

Market Impact and Stock Performance

MicroStrategy’s ongoing Bitcoin acquisitions have impacted its stock price (MSTR), which saw fluctuations as a result of these strategic moves. Despite the current market volatility, the company remains committed to using Bitcoin as its Treasury Reserve Asset (TRA).

Previously, we discussed how MicroStrategy plans to raise $2 billion to buy more Bitcoin and currently holds 226,500 BTC. The company remains committed to Bitcoin despite reporting a Q2 loss of $102.6 million. As of today, according to CoinMarketCap data, Bitcoin (BTC) is steady at $59,177.89, having surged by 0.76% in the past day and 3.42% in the past week.