[NEWS] MicroStrategy buys additional Bitcoin, bringing holdings to 1% of issuance limit

On the 19th, US intelligence company MicroStrategy announced that it had purchased additional Bitcoin (BTC).

The company raised funds by issuing $603.75 million in convertible bonds and purchased additional Bitcoin.

MicroStrategy announced that it had purchased approximately 9,245 BTC for approximately $623 million (approximately ¥94 billion) between March 11th and 18th, using $592.3 million (approximately ¥89.5 billion) in proceeds from a public offering and $30.7 million (approximately ¥4.6 billion) in cash. The average acquisition price per BTC, including fees and expenses, was approximately $67,382 (approximately ¥10.2 million).

As of March 18, MicroStrategy and its subsidiaries held a total of approximately 214,246 BTC, with a total purchase price, including fees and expenses, of approximately $7.53 billion, and an average acquisition price of approximately $35,160 per BTC. This gives MicroStrategy 1% of the Bitcoin issuance limit.

MicroStrategy's convertible notes mature in 2031, have a coupon rate of 0.875%, and can be converted into cash, Class A common stock, or both. According to the company, the conversion rate equates to 0.4297 shares per $1,000 of the original principal amount of the note, or a conversion price of approximately $2,327.21 per share.

"We remain strongly committed to our long-term strategy with a long-term focus," MicroStrategy CEO Phong Le told analysts during the company's fourth-quarter earnings call. "We believe MicroStrategy is the world's first Bitcoin developer. We are a publicly traded company committed to the continued advancement of the Bitcoin network through financial market activism, advocacy, and technology innovation."

Co-founder and Chairman Michael Saylor also told analysts, "2024 will be the year of Bitcoin's birth as an asset class for institutional investors." He added, "There are many reasons why Bitcoin itself is performing well, but one of the reasons is that Bitcoin represents the digital transformation of capital."

Source: Announcement
Image: Shutterstock

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