Key Points
- MicroStrategy increases its Bitcoin holdings with 11,931 BTC worth almost $800 million.
- The purchases raised the company’s holdings to 226,331 BTC worth about $14.7 billion.
According to the latest reports coming from Bloomberg, MicroStrategy bought 11,931 Bitcoins between April 27 and June 19 worth about $775 million, according to a filing today with the US SEC.
The latest purchase of the company raised its Bitcoin holdings to 226,331 BTC worth about $14.7 billion at current prices.
Michael Saylor, chairman and co-founder of MicroStrategy, began purchasing Bitcoin back in 2020 as an inflation hedge and alternative to cash. Bitcoin is now up by approximately 600% since Saylor began buying the digital assets.
MicroStrategy’s shares surged over 1,000% since the BTC buying decision
According to the same reports by Bloomberg, the move to buy BTC propelled the share price of MicroStrategy which surged over 1,000% since Saylor’s decision to buy the coins.
Saylor also announced the company’s move via a post on X, revealing that MicroStrategy completed a $800 million offering of convertible notes.
In an official press release, MicroStrategy reveals that the notes were sold via a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
According to the press release, the notes are unsecured, senior obligations of MicroStrategy, and bear interest at a rate of 2.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024.
The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms.
According to the company, it plans to use the net proceeds from the sale of the notes to acquire more Bitcoin and for general corporate purposes.
MicroStrategy considers itself the world’s first Bitcoin development company, according to its official notes.
Bitcoin is now trading over $65,000 after earlier today the coin surged above $66,000. Despite the recent price volatility, BTC remains surrounded by optimistic price predictions.
