Microstrategy has increased its Bitcoin holdings, buying 7,420 Bitcoins for $458 million. This brings the company’s total to 252,220 Bitcoins. The purchase came after they completed a $1 billion senior notes sale, using most of the funds to buy more Bitcoin.
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Why Microstrategy Purchased Bitcoin
The company announced that on September 19, 2024, they finished selling 0.625% senior notes, due for repayment in 2028. The total amount sold was $1.01 billion, including an additional $135 million from an option for early buyers to purchase more. This extra sale was completed on September 19, 2024. The sale was private and aimed at large buyers under Rule 144A from the Securities Act of 1933.
The money raised was specifically for buying more Bitcoin, which Microstrategy did soon after. Michael Saylor, the founder and chairman, confirmed the purchase of 7,420 Bitcoins for around $458 million, at an average price of $61,750 each. He also mentioned the company’s Bitcoin earnings were 5.1% this quarter and 17.8% for the year.
Details from Microstrategy’s report to the U.S. Securities and Exchange Commission (SEC) showed the Bitcoins were bought at $61,750 each. Saylor also shared that the company now holds 252,220 Bitcoins, purchased for about $9.9 billion, with an average price of $39,266 per Bitcoin. This leaves the company with an unrealized profit of around $5.9 billion.
With this latest purchase, Microstrategy remains the largest public holder of Bitcoin. Saylor also owns around $1 billion worth of Bitcoin personally.
Microstrategy started buying Bitcoin in 2020 and has spent close to $10 billion on it. Saylor has strongly supported Bitcoin, often talking about how it is better than traditional assets. He was a key speaker at the Bitcoin Conference in Nashville, where he discussed the benefits of Bitcoin.
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