MicroStrategy Raises 11,931 Bitcoins Using $800 Million Convertible Note Proceeds
MicroStrategy Chief Executive Officer Michael Saylor recently announced that his firm purchased an additional 11,931 Bitcoins at an average price of ~$65,883 per Bitcoin. This development has added some upward momentum to the price of Bitcoin (BTC), which is currently trading 1.46% higher at $65,995, with a market cap of $1.3 trillion.
MicroStrategy Raises $800 Million in Convertible Bonds
A week ago, MicroStrategy (NASDAQ: MSTR) announced an $800 million convertible note offering as part of its commitment to increase its Bitcoin holdings. The bonds will mature in 2032 with an interest rate of 2.25%, payable semi-annually beginning December 15, 2024. These notes are essentially unsecured, senior obligations of MicroStrategy.
These notes may be converted into cash, MicroStrategy Class A common stock, or a combination of both, at the company’s discretion. According to the MicroStrategy press release, before December 15, 2031, these conversions can only occur under certain conditions and during specified periods.
In his latest announcement on the social media platform, Michael Saylor announced that MicroStrategy currently holds a total of 226,331 Bitcoins purchased at an average price of $36,798 per BTC, bringing the total to approximately $8.33 billion.
MicroStrategy (MSTR) share price is currently trading at 2.35% in pre-market hours and is exceeding $1,500 levels. Since the beginning of 2024, MSTR stock is already up over 114%. In fact, MicroStrategy stock has outperformed Bitcoin since the beginning of 2023. MSTR’s one-year gain is 338%, while Bitcoin’s is 145%.MicroStrategy purchased an additional 11,931 BTC for ~$786.0 million using proceeds from convertible notes and excess cash for ~$65,883 per person. #bitcoin. As of 20.06.24, $MSTR 226,331 people $BTC It was purchased for ~$8.33 billion at an average price of $36,798 per Bitcoin.
— Michael Saylor(@saylor) June 20, 2024
BTC Price Movement
Bitcoin price is facing some resistance near $66,000 amid the strong selling move in the market recently. However, some market analysts had previously predicted that we could see the BTC price return to $72,000 if MicroStrategy invests its convertible bonds in Bitcoin.
On the other hand, data from CoinGlass shows that massive short positions of $1.67 billion will be liquidated if the BTC price approaches $70,000.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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