MicroStrategy continues to expand its Bitcoin assets, investing another $458.2 million in cryptocurrency in September.
New Bitcoin Acquisition
MicroStrategy acquired 7,420 Bitcoins between September 13 and September 19, with the average acquisition cost per Bitcoin disclosed at $61,750. According to a recent SEC filing, the company currently holds 252,220 Bitcoins, accounting for about 1.25% of all existing Bitcoins. The total value of the company's Bitcoin holdings is estimated at approximately $15.8 billion, confirming MicroStrategy's status as the largest publicly traded holder of cryptocurrency.
$1.01 Billion Convertible Notes Offering
The recent Bitcoin purchase closely follows the completion of a $1.01 billion private offering of convertible senior notes with a 0.625% coupon and a 40% conversion premium. The proceeds from the offering will be used to fund further Bitcoin acquisitions and retire higher-yielding securities. MicroStrategy plans to completely retire $500 million of senior secured notes by September 26, 2024, thereby releasing approximately 69,080 Bitcoins valued at $4.4 billion from collateral.
Market Reaction
Despite the significant acquisition, the market reaction has been muted, as previous purchases have largely been priced in by investors. The company's stock has more than doubled in value this year, significantly outperforming Bitcoin's approximately 50% increase over the same period.
MicroStrategy continues to actively invest in Bitcoin, solidifying its status as the largest publicly traded holder of cryptocurrency in the world. The market will closely watch the company's future moves.
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