MicroStrategy, a prominent holder of Bitcoin (BTC) in the public domain, has successfully completed another offering of convertible notes to increase its BTC holdings.
On June 20, MicroStrategy officially announced the completion of its 2.25% convertible senior notes due 2032 offering. The total principal amount of notes sold in the offering reached $800 million, with an additional $100 million in notes issued through an option to purchase. The initial purchasers exercised their purchase agreement in full on June 17, with another purchase taking place on June 18.
From the offering, MicroStrategy acquired 11,931 BTC for $786 million. After accounting for discounts, commissions, and offering expenses, the net proceeds from the notes sale amounted to approximately $786 million. These funds will be used by MicroStrategy to acquire more Bitcoin and for general corporate purposes.
In a related development, MicroStrategy disclosed that it purchased an additional 11,931 Bitcoin for $786 million using funds from convertible notes and excess cash, at a price of $65,883 per BTC. As of June 20, MicroStrategy holds a total of 226,331 BTC acquired for around $8.33 billion, with an average price of $36,798 per BTC.
MicroStrategy, under the leadership of Michael Saylor, has established itself as one of the largest holders of Bitcoin globally. Since declaring Bitcoin as its primary reserve currency in 2020, the company has been steadily accumulating BTC.
Despite its significant investments in Bitcoin, which has seen a substantial increase in value since early 2020, MicroStrategy reported substantial losses in 2024. With a reported net loss of $53.1 million in the first quarter of 2024, the company has yet to adopt the new digital asset fair value accounting standard, which considers the market value of BTC.
MicroStrategy’s strategic moves in the Bitcoin market have been closely watched by industry experts and cryptocurrency enthusiasts alike, with the company continuing to make headlines for its bold investment decisions.