MicroStrategy Acquires 7,420 BTC Following $1 Billion Bond Sale

MicroStrategy announced the acquisition of an additional 7,420 BTC for $458.2 million (at approximately $61,750 per coin) following the sale of convertible senior notes amounting to $1.01 billion with an annual interest rate of 0.625% and maturing in 2028. 

MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 $BTC acquired for ~$9.9 billion at ~$39,266 per bitcoin. $MSTR https://t.co/JUtgztpzBu

— Michael Saylor⚡️ (@saylor) September 20, 2024

The net proceeds from the sale of the securities amounted to approximately $997.4 million. $500 million will be used to repay the remaining principal on senior secured notes due 2028 with a coupon rate of 6.125%. 

Upon repayment, the collateral for the notes, which amounts to approximately 69,080 BTC, will be released.

The remaining funds were allocated for the purchase of bitcoin and corporate purposes. The firm now holds 252,220 BTC, acquired for $9.9 billion at an average rate of approximately $39,266 per coin. Their value at the current price of the leading cryptocurrency, $62,900, is approximately $15.86 billion.

On September 16, MicroStrategy announced the issuance of securities amounting to $700 million for “acquiring additional bitcoins and funding general corporate purposes.” The target threshold was later raised to $875 million.

The bonds are due on September 15, 2028, unless redeemed or converted earlier. Under certain conditions, on or after December 20, 2027, the company may redeem all or part of the issuance for cash.

Holders will have the right to require MicroStrategy to repurchase all or part of their securities on September 15, 2027.

At maturity, holders may convert the bonds into cash, MicroStrategy class “A” common stock, or a combination thereof at the issuer’s discretion.

Earlier, on September 13, MicroStrategy reported the purchase of an additional 18,300 BTC for $1.1 billion.