MicroStrategy has expanded its bitcoin treasury again, purchasing 12,000 BTC after completing an $800 million private offering of convertible senior notes. As of March 10, 2024, the Nasdaq-listed company said it held a total of 205,000 BTC, acquired for roughly $6.91 billion at an average purchase price of about $33,706 per bitcoin.
Details of the latest bitcoin purchase
According to the company’s filing with the U.S. Securities and Exchange Commission, MicroStrategy used approximately $781.1 million from the convertible note offering and another $40.6 million in excess cash to fund the latest acquisition. The purchases were made between Feb. 26 and March 10, with the company spending about $821.7 million in total for 12,000 BTC. Including fees and expenses, the average acquisition price came to roughly $68,477 per BTC.
Offering upsized amid strong market demand
MicroStrategy said the note sale closed on March 8. The transaction was initially launched at $600 million, but was later increased to $800 million in aggregate principal amount after what the company described as strong market reception. That total included the exercise of an option by the initial purchasers to buy an additional $100 million of notes. Net proceeds to the company were approximately $782.0 million.
The notes are described as unsecured senior obligations of MicroStrategy and carry an annual interest rate of 0.625%. They are set to mature on March 15, 2030, unless earlier repurchased, redeemed, or converted under their terms. The company added that the notes may be converted into cash, shares of its class A common stock, or a combination of both, at MicroStrategy’s election.
Bitcoin strategy remains firmly intact
The latest purchase reinforces MicroStrategy’s long-running strategy of using bitcoin as a core treasury asset. Executive Chairman Michael Saylor said on X that the company financed the acquisition through proceeds from the note offering and excess cash. The move keeps MicroStrategy among the most closely watched public companies in the bitcoin market.
While the average price paid for this latest batch is well above the company’s overall average cost basis, the new purchase shows that management remains confident in bitcoin’s long-term outlook. Saylor has recently reiterated his bullish view, arguing that bitcoin stands above other asset classes and should continue attracting capital over time.