MicroStrategy, a prominent holder of Bitcoin, has successfully completed another convertible notes offering, raising $603.75 million to bolster its Bitcoin treasury reserve. Former CEO Michael Saylor announced the completion of the offering on social media platform X.
The offering comprised 0.875% convertible senior notes due 2031. MicroStrategy sold the notes in a private offering to qualified institutional buyers in compliance with U.S. securities laws. The offering included an option to purchase $78.75 million aggregate principal amount of notes.
Similar to previous offerings, MicroStrategy intends to use the net proceeds from the sale to acquire additional Bitcoin for its treasury reserve. Following the completion of the offering, the company wasted no time in acquiring an additional 9,245 BTC using the proceeds from the convertible notes offering and excess cash.
MicroStrategy now holds a total of 214,246 BTC, representing approximately 1.02% of Bitcoin’s total supply. The average BTC price of the recent purchase was $67,382 per BTC. Notably, the firm has consistently pursued a strategy of accumulating Bitcoin, with Saylor emphasizing his commitment to hodling Bitcoin and asserting that it serves as the company’s exit strategy.
This offering follows MicroStrategy’s recent $800 million convertible note offering on March 8, which was also aimed at acquiring more Bitcoin. The company has been actively increasing its Bitcoin holdings through strategic offerings, demonstrating its conviction in the long-term value proposition of Bitcoin.
Michael Saylor has emerged as a prominent advocate for Bitcoin, reaffirming his commitment to holding Bitcoin even during market fluctuations. He has emphasized that Bitcoin serves as a hedge against inflation and currency debasement, positioning it as a strategic asset for the company’s treasury.
MicroStrategy’s completion of another convertible notes offering underscores its continued commitment to accumulating Bitcoin as a key component of its treasury reserve strategy. The move reflects the company’s confidence in Bitcoin’s potential as a store of value and its long-term investment thesis.
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