MicroStrategy Bitcoin Investments Boosted with $1.11 Billion Purchase

Key Points:

• MicroStrategy purchased 18,300 Bitcoin for $1.11 billion between August and September 2024, bringing its total holdings to 244,800 BTC, worth around $14 billion.
• The company used convertible senior notes to finance MicroStrategy Bitcoin investments.

MicroStrategy announced that it bought 18,300 Bitcoin (BTC) between August 6 and September 12, 2024, at an average price of $60,408 per token.

Read more: MicroStrategy Bitcoin Holdings Tops List of Companies With Over $13.5 Billion of Reverse

MicroStrategy Bitcoin Investments Continues to Expand

The new MicroStrategy Bitcoin investment, at an approximate value of $1.11 billion, only cements this company into one of the biggest institutional holders of Bitcoin. Accordingly, the business analytics company now holds a total of 244,800 BTC, carrying a cumulative value of $9.45 billion based on an average acquisition price of $38,585 per BTC.

The purchase has received high praise and scepticism alike, as the company’s Executive Chairman, Michael Saylor, has been very aggressive in buying Bitcoin. In the latest disclosure, Saylor announced the purchase of the social media platform X and raised the total number of BTC owned by MicroStrategy. With Bitcoin priced at around $58,000, the MicroStrategy Bitcoin investment by is valued at around $14 billion.

Company Leverages Convertible Senior Notes for Cryptocurrency Expansion

Since 2024, MicroStrategy has done convertible senior note sales to finance some of the purchases. In June last year, the company issued a private offering of $800 million in convertible senior notes. The notes are unsecured but have a higher claim precedence than other debts.

MicroStrategy has been buying Bitcoin since August 2020, with the general goal of increasing diversification and returns through cryptocurrency. The company’s average purchase price across all acquisitions stands at $38,585 per BTC, significantly below the current market price, underlining how well its strategy could pay off.

Michael Saylor also is said to have more than $1 billion in Bitcoin himself, and he has been one of the most ardent voices for the digital currency. While there was much skepticism in the beginning about the MicroStrategy Bitcoin investment, recent market trends seem to have somewhat vindicated the strategy that lay behind the move, after the recent rise of Bitcoin at the beginning of 2023.