MicroStrategy raised 1 billion USD through its recent corporate bond issuance. About 500 million USD from this amount was used to repurchase bonds, while the remaining funds were invested in Bitcoin.
In an announcement on the evening of September 20, 2024, billionaire Michael Saylor, the owner of MicroStrategy, confirmed that the company had completed the issuance of 1.01 billion USD in convertible bonds, with an annual interest rate of 0.625% and maturing in 2028. The amount raised exceeded the initial plan of 700 million USD announced three days prior.
MicroStrategy Completes $1.01 Billion Upsized Offering of Convertible Notes at 0.625% Coupon and 40% Conversion Premium. $MSTR https://t.co/mJK5xwyn4S
— Michael Saylor⚡️ (@saylor) September 20, 2024
After deducting costs and discounts, MicroStrategy netted 997.4 million USD from this issuance. The company used 500 million USD to repurchase bonds with a 6.125% interest rate maturing in 2028 and allocated the remaining amount to purchase Bitcoin and for other purposes.
With the leftover funds from the issuance, MicroStrategy acquired an additional 7,420 Bitcoins, valued at 458.2 million USD, at an average price of 61,750 USD per Bitcoin.
MicroStrategy’s total Bitcoin holdings now stand at 252,220, with an average purchase price of 39,266 USD per Bitcoin. This represents a 3% increase from the 244,800 BTC held a week ago. Currently, the company’s Bitcoin portfolio is yielding nearly 60% in profits.
MicroStrategy began its venture into Bitcoin in August 2020, with an initial investment of 250 million USD. Despite ongoing losses, they have consistently added to their Bitcoin reserves and have no plans to sell.
In addition to major players like MicroStrategy, MARA, Tesla, and Tether, which continue to follow periodic Bitcoin buying strategies, many large companies and institutions such as Metaplanet, OneMedNet, Boyaa Interactive, and Semler Scientific are increasingly viewing Bitcoin as an effective investment tool.
