Breaking: MicroStrategy Buys $458.2 Million Bitcoin From Debt Offering

American blockchain intelligence and software firm MicroStrategy Inc. has completed the private issuance of $1.01 billion in Convertible Senior Notes. First announced last week, the original target was to offer a total of $700 million worth of debt notes, with a Bitcoin purchase underlying the push.

MicroStrategy and the Epic Bitcoin Play

When it announced the private offering of $700 million in convertible senior notes, MicroStrategy notified that it would be made available to qualified institutional buyers. The firm designed the offering based on Rule 144A under the Securities Act of 1933.

The net proceeds from this offering were planned to redeem all $500 million outstanding aggregate principal amount of MicroStrategy’s 6.125% Senior Secured Notes due in 2028. The balance will go towards acquiring more BTC and for general purposes.

A few days after, the Michael Saylor-led firm noted that the offering was oversubscribed, underscoring the public’s belief in its Bitcoin strategy. As reported earlier by Coingape, the company upsized the notes offering from $700 million to $875 million as demand got higher. This was to help the company to buy even more Bitcoin. MicroStrategy estimated that the net proceeds from the sale of the notes will be $864.1 million. With more optimism, the company believed the proceeds could even reach as high as $997.4 million. This is based on the condition that the initial purchasers will use the option to buy additional notes.

The latest development confirms that the private issuance exceeded the firm’s expectations. This is not the first time MicroStrategy will be issuing a Convertible Notes to buy more Bitcoin. It remains one of the largest non-crypto entity on Wall Street with a very large Bitcoin portfolio.

MicroStrategy Acquires Additional 7,420 Bitcoin

In a follow-up post on X, MicroStrategy Chairman Michael Saylor confirmed that the firm has acquired additional 7,420 Bitcoin.

The purchase was worth approximately $458.2 million at an average price of $61,750 per BTC unit. This has increased the firm’s Bitcoin holding from 244,800 to 252,220 BTC. This company acquired this entire holding for $9.9 billion at an average price of $39,266 per Bitcoin.

Noteworthy, Bitcoin is currently trading at $62,910.29 with a 0.13% drop in the last 24 hours. At this level, MicroStrategy’s total Bitcoin holding is valued at $15.8 billion, placing the company on a large profit margin. Saylor noted that the business intelligence software company has achieved BTC Yield of 5.1% QTD and 17.8% YTD.