Business intelligence firm MicroStrategy announced on Tuesday that it has finalized a $603.75 million offering of convertible senior notes due 2031, and subsequently deployed the proceeds along with excess cash to purchase an additional 9,245 Bitcoin. The acquisition cost approximately $623 million, representing an average price of $67,382 per Bitcoin.
Michael Saylor, co-founder and executive chairman of MicroStrategy, confirmed the purchase on X (formerly Twitter): “MicroStrategy has acquired an additional 9,245 BTC for ~$623.0M using proceeds from convertible notes & excess cash for ~$67,382 per bitcoin. As of 3/18/24, [MicroStrategy] hodls 214,246 [bitcoin] acquired for ~$7.53B at average price of $35,160 per bitcoin.”
Details of the Convertible Note Offering
The company disclosed in a regulatory filing: “The aggregate principal amount of the notes sold in the offering was $603.75 million, which includes $78.75 million aggregate principal amount of notes issued pursuant to an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued.” The notes bear interest and have conversion terms that were previously announced. Analysts noted that this capital-raising structure minimizes near-term dilution while providing substantial cash for Bitcoin accumulation.
Bitcoin Holdings Growth and Market Context
MicroStrategy has been accumulating Bitcoin on its balance sheet since 2020 and remains the largest publicly traded company by Bitcoin holdings, despite being recently surpassed by BlackRock’s spot Bitcoin ETF (IBIT), which now holds 237,339.13 BTC. Nevertheless, MicroStrategy’s corporate strategy continues to influence market sentiment. Saylor has repeatedly described Bitcoin as “digital gold” and a hedge against inflation and currency debasement.
The latest purchase came during a period of price consolidation after Bitcoin retreated from its all-time high near $73,000. Some traders viewed the move as a strong vote of confidence, while others cautioned about leverage risks. MicroStrategy’s stock edged higher following the announcement, reflecting favorable market reception.
At current Bitcoin prices around $65,000, MicroStrategy’s holdings are valued at approximately $13.9 billion, representing a significant unrealized gain over its average cost basis of $35,160 per coin.