MicroStrategy has finalized a $1.01 billion offering of 0.625% convertible senior notes, due in 2028. The private offering, completed on September 19, was aimed at institutional investors and allows holders to convert the notes into cash or MicroStrategy stock.
The company plans to use a significant portion of the funds to fuel its aggressive Bitcoin acquisition strategy. Between September 13 and 19, MicroStrategy used $458.2 million from the offering to purchase 7,420 Bitcoins at an average price of $61,750 each. The company has also allocated part of the funds to redeem $500 million in senior secured notes, which will release collateral, including 69,080 Bitcoins.
On September 12, MicroStrategy made a significant purchase of 18,300 BTC worth $1.11 billion, boosting its total Bitcoin holdings. By September 20, the company had accumulated 252,220 BTC, valued at approximately $15.88 billion. With an additional 25,720 BTC acquired in September alone, this marked an aggressive acquisition period. In total, MicroStrategy has added 63,070 BTC in 2024, further solidifying its position as one of the largest corporate holders of Bitcoin.
See Related: MicroStrategy Aims For $786 Million In Bitcoin Investment With Convertible Notes
Bitcoin Accumulation Strategy
MicroStrategy’s aggressive Bitcoin accumulation strategy has inspired various companies to adopt a similar approach.
Firms like Cathedra Bitcoin, and Metaplanet follow in MicroStrategy’s footsteps by incorporating Bitcoin into their corporate treasuries. Cathedra Bitcoin, for instance, has pivoted from mining to managing data centers, allowing it to accumulate Bitcoin more sustainably. Meanwhile, Metaplanet’s strategy of steadily increasing its Bitcoin reserves has led to significant growth, with its stock value surging by 443% this year alone.
These companies are leveraging Bitcoin as both a hedge against inflation and a key asset to enhance shareholder value, mirroring the bold financial playbook pioneered by MicroStrategy.
