MicroStrategy Bitcoin Investment Continues to Boost With 7,420 BTC - Coincu

Key Points:

• MicroStrategy acquired 7,420 Bitcoins for approximately $458.2 million between September 13 and September 19.
• The MicroStrategy Bitcoin investment follows a $1.01 billion private offering of convertible senior notes.

MicroStrategy added more Bitcoins to its portfolio by buying an additional 7140 Bitcoins for about 458.2 million dollars.

Read more: MicroStrategy Bitcoin Investment Will Be Boosted With $2 Billion Share Offering Plan

MicroStrategy Bitcoin Investment Continues to Gain Strength

The new MicroStrategy Bitcoin investment was made between September 13 and September 19, with its average acquisition cost per Bitcoin disclosed at $61,750 in a recent SEC filing.

MicroStrategy is known for the corporate strategy of accumulation of Bitcoins, holding 252,220 Bitcoins at present and accounting for about 1.25% of all Bitcoins in circulation. All of the MicroStrategy Bitcoin investment is now valued at around $15.8 billion, which cements the company’s status as the largest publicly traded corporate holder of cryptocurrency.

The Offering of $1.01 Billion Convertible Senior Notes

The latest purchase comes hot on the heels of the completion of a $1.01 billion private offering of convertible senior notes due 2028. The notes come with a 0.625% coupon and a 40% conversion premium. Proceeds will be used to fund further purchases of Bitcoin and to retire higher-yielding securities.

MicroStrategy plans to completely retire the $500-million senior secured notes due 2028 on September 26, 2024. The redemption would release collaterals, including approximately 69,080 Bitcoins amounting to $4.4 billion.

The reaction has been weak for what was a large purchase, however, since previous purchases have largely been priced in for investors. The firm’s stock has more than doubled in value this year, well outperforming the roughly 50% increase in Bitcoin’s price during the same period of time.

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