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Read more: MicroStrategy Bitcoin Investment Will Be Boosted With $2 Billion Share Offering Plan
The new MicroStrategy Bitcoin investment was made between September 13 and September 19, with its average acquisition cost per Bitcoin disclosed at $61,750 in a recent SEC filing.
MicroStrategy is known for the corporate strategy of accumulation of Bitcoins, holding 252,220 Bitcoins at present and accounting for about 1.25% of all Bitcoins in circulation. All of the MicroStrategy Bitcoin investment is now valued at around $15.8 billion, which cements the company’s status as the largest publicly traded corporate holder of cryptocurrency.
The latest purchase comes hot on the heels of the completion of a $1.01 billion private offering of convertible senior notes due 2028. The notes come with a 0.625% coupon and a 40% conversion premium. Proceeds will be used to fund further purchases of Bitcoin and to retire higher-yielding securities.
MicroStrategy plans to completely retire the $500-million senior secured notes due 2028 on September 26, 2024. The redemption would release collaterals, including approximately 69,080 Bitcoins amounting to $4.4 billion.
The reaction has been weak for what was a large purchase, however, since previous purchases have largely been priced in for investors. The firm’s stock has more than doubled in value this year, well outperforming the roughly 50% increase in Bitcoin’s price during the same period of time.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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