Breaking: MicroStrategy Scoops 11,931 Bitcoins Using $800 Million Convertible Note Proceeds
Highlights
- MicroStrategy announced an $800 million offering of convertible notes for buying Bitcoin holdings.
- These notes carry a 2.25% interest rate, maturing in 2032, and can be converted into cash, shares of MicroStrategy class A common stock.
- MicroStrategy holds a total of 226,331 bitcoins acquired at an average price of $36,798 per BTC.
MicroStrategy Executive Chairman Michael Saylor recently announced that his firm has purchased an additional 11,931 Bitcoins at an average price of ~$65,883 per Bitcoin. This development has given some upside push to the Bitcoin (BTC) price currently trading 1.46% up at $65,995 with a market cap of $1.3 trillion.
MicroStrategy Raises $800 Million From Convertible Notes
A week before, MicroStrategy (NASDAQ: MSTR) announced its $800 million convertible notes offerings in its commitment to increase its Bitcoin holdings. The notes will reach maturity in 2032 with a 2.25% interest rate, paid semi-annually beginning on December 15, 2024. These notes are basically unsecured, senior obligations of MicroStrategy.
These notes can either be converted into cash, shares of MicroStrategy class A common stock, or a combination of both, as per the company’s discretion. Before December 15, 2031, these conversions can happen only under specific conditions and designated periods, as per the MicroStrategy press release.
In his latest announcement on the social media platform, Michael Saylor announced that MicroStrategy now holds a total of 226,331 Bitcoins acquired at an average price of $36,798 per BTC, totaling approximately $8.33 billion.
MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
— Michael Saylor⚡️ (@saylor) June 20, 2024
The MicroStrategy (MSTR) share price is already trading at 2.35% in the pre-market hours shooting past $1,500 levels. Since the beginning of 2024, the MSTR stock has already surged by over 114% gains. In fact, the MicroStrategy stock has outperformed Bitcoin throughout since the beginning of 2023. The MSTR one-year gains are at 338% while that of Bitcoin are at 145%.
BTC Price Action
The Bitcoin price is facing some resistance at $66,000 recently amid strong selling action in the market. However, some market analysts earlier predicted that if MicroStrategy invests its convertible notes to Bitcoins, then we can see a BTC price bounce back to $72,000.
On the other hand, data from CoinGlass shows that if the BTC price reaches closer to $70,000, a massive $1.67 billion in short positions will be liquidated.
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