MicroStrategy Completes $800M Convertible Note

MicroStrategy's Strategic Move to Bolster Bitcoin Holdings Amid Ongoing Market Volatility
MicroStrategy Completes $800M Convertible Note
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MicroStrategy, one of the largest public holders of Bitcoin, has successfully completed an $800 million convertible note offering, signaling its unwavering commitment to increasing its Bitcoin reserves. Announced on June 20, 2024, this latest offering saw the issuance of 2.25% convertible senior notes due 2032, with initial purchasers fully exercising their options, bringing the total to $800 million.

The net proceeds of approximately $786 million were used to acquire 11,931 Bitcoin at an average price of $65,883 per BTC. This purchase increases MicroStrategy's total Bitcoin holdings to 226,331 BTC, valued at around $8.33 billion, acquired at an average price of $36,798 per BTC.

Despite heavy investments in Bitcoin and substantial market gains, MicroStrategy reported a net loss of $53.1 million in Q1 2024. The company has yet to adopt the new digital asset fair value accounting standard, which would account for Bitcoin price movements in market value.

This strategic move underscores MicroStrategy’s long-term confidence in Bitcoin as a primary reserve asset and highlights its aggressive strategy to capitalize on market opportunities despite the inherent volatility of cryptocurrency investments.

Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

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