Microstrategy Issues Bonds To Purchase Bitcoin

MicroStrategy conducted a new financing round with a $604 million bond issuance as part of its strategy to continue purchasing Bitcoin.

MicroStrategy has successfully completed another convertible bond offering to expand its Bitcoin portfolio. The company's founder, Michael Saylor, announced on March 18th that the previously announced 2031 maturity and 0.875% convertible senior bond offering had been successfully completed.

The revenue from this bond offering amounted to $603 million, inclusive of the $78.75 million worth of bonds issued under the purchase option. The bonds were sold through a private offering to qualified institutional buyers in accordance with U.S. securities laws.

This offering came shortly after MicroStrategy completed an $800 million convertible bond offering just a few days ago, with the proceeds used to add 12,000 BTC to its Bitcoin treasury reserve. Similar to the previous offering, Saylor mentioned that they would utilize the net proceeds from the convertible bond sale for additional Bitcoin purchases.

Following the announcement of the new $604 million offering, Saylor revealed that they had purchased an additional 9,245 BTC with the proceeds from the convertible bonds and excess cash. The average price for this purchase was $67,382 per BTC. MicroStrategy currently holds 214,246 BTC, representing approximately 1.02% of Bitcoin's total supply. The average cost per BTC for the purchases made by the company so far has been determined to be $35,160.

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