MicroStrategy Acquires 11,931 BTC and Issues $800 Million in Shares

MicroStrategy has acquired an additional 11,931 BTC for $785 million (~$65,883 per coin), utilizing proceeds from convertible notes and excess cash. This was announced by the company’s founder, Michael Saylor. 

MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON

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

The relevant documents have been submitted to the U.S. Securities and Exchange Commission. 

In total, MicroStrategy now holds 226,331 BTC, acquired for approximately $8.33 billion. At the time of writing, these assets are valued at $14.93 billion. 

Simultaneously, Saylor announced the issuance of convertible bonds with a yield of 2.25% maturing in 2032. The total value of the securities sold amounted to $800 million.  

MicroStrategy Completes $800 Million Offering of Convertible Notes at 2.25% Coupon and 35% Conversion Premium $MSTR https://t.co/qJ6awPbKjO

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

“MicroStrategy intends to use the net proceeds from the sale of the bonds to acquire additional bitcoins and for general corporate purposes. The bonds were sold to persons reasonably believed to be qualified institutional buyers under U.S. securities laws,” the announcement stated. 

The conversion premium of the bonds to common stock will be approximately 35%. 

The company announced plans to issue its own securities a week ago. The initial threshold was $500 million, but the firm later raised it to $700 million. 

MicroStrategy employed a similar instrument in March 2024. At that time, the company issued two tranches of convertible bonds for $600 million and $500 million.

On March 26, Saylor’s firm’s market capitalization reached a new high since 2000 at $31.85 billion. 

Earlier, on June 7, the value of open short positions on MicroStrategy shares rose to $6.9 billion. This figure has tripled over the past six months.