News

MicroStrategy Bitcoin Investment Continues to Boost With 7,420 BTC

Key Points:

  • MicroStrategy acquired 7,420 Bitcoins for approximately $458.2 million between September 13 and September 19.
  • The MicroStrategy Bitcoin investment follows a $1.01 billion private offering of convertible senior notes.
MicroStrategy added more Bitcoins to its portfolio by buying an additional 7140 Bitcoins for about 458.2 million dollars.

Read more: MicroStrategy Bitcoin Investment Will Be Boosted With $2 Billion Share Offering Plan

MicroStrategy Bitcoin Investment Continues to Gain Strength

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 Offering of $1.01 Billion Convertible Senior Notes

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.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

2 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

5 hours ago

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

8 hours ago

Best Cryptos to Buy: Qubetics Set to Rise, Bitcoin Knocks at $100k Milestone, Avalanche to Release 1.67M Tokens

Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…

8 hours ago

Ike Goes Live on Mainnet: Unlocking Liquid Staking on Aleph Zero

London, United Kingdom, 21st November 2024, Chainwire

9 hours ago

Native USDC on Aptos Coming Soon to Boost DeFi and P2P Transactions

The move will see developers utilize USDC on Aptos in creating dApps on a wide…

9 hours ago

This website uses cookies.