Key Takeaways
- MicroStrategy has expanded its bitcoin holdings to 252,220 BTC, worth nearly $16 billion, after purchasing 7,420 more bitcoin.
- The company increased its convertible note offering from $700 million to $1.01 billion, using the funds for bitcoin acquisitions.
- MicroStrategy's bitcoin yield rose to 5.1%, and it continues to pioneer corporate bitcoin investments under Michael Saylor's leadership.
MicroStrategy Expands Bitcoin Holdings with Major Purchase
MicroStrategy acquired 7,420 bitcoin between September 13 and 19, spending approximately $458.2 million.
The average price per bitcoin during this acquisition was $61,750.
This latest purchase brings the company's total bitcoin holdings to 252,220 BTC, valued at nearly $16 billion at current market prices.
Convertible Note Offering Increased to Fund Purchase
MicroStrategy upsized its convertible note offering from $700 million to $1.01 billion in principal amount.
The company used the proceeds from this offering to fund the recent bitcoin acquisition.
Other companies, such as Semler Scientific and Marathon Digital, have followed MicroStrategy’s lead in issuing debt to acquire bitcoin.
MicroStrategy’s Long-Term Strategy and Financial Impact
The company has spent a total of $9.9 billion to acquire its current bitcoin holdings at an average price of $39,266 per BTC.
Despite the acquisition, MicroStrategy’s shares dropped 1.5% following the announcement, along with a decline in U.S. equity markets and bitcoin prices.
MicroStrategy still has $889 million remaining from its $2 billion ATM equity issuance, allowing for future BTC purchases.
