MicroStrategy, the analytics software company led by Michael Saylor, continues to strengthen its position in the crypto space. On September 19, 2024, the company announced that it had raised $1.01 billion through an offering of 0.625% convertible senior notes due 2028. The fundraising is primarily aimed at acquiring more bitcoin and repaying some of its existing debt.
MicroStrategy doubles down on bitcoin with $1 billion fundraising!
This new convertible note issuance has been well received by institutional investors, allowing MicroStrategy to continue its aggressive Bitcoin acquisition strategy. The company plans to use a portion of the proceeds to repurchase $500 million in senior secured notes, releasing collateral, including 69,080 Bitcoin. Between September 13 and September 19, MicroStrategy acquired approximately 7,420 BTC for approximately $458.2 million, at an average price of $61,750 per Bitcoin.
This fundraising is part of a broader strategy by MicroStrategy to increase its Bitcoin holdings. Indeed, the company recently announced the acquisition of 18,300 Bitcoins for $1.11 billion, bringing its total to 244,800 BTC. Additionally, MicroStrategy recently raised an additional $700 million through a convertible senior note offering, aimed at repaying a portion of its existing debt and acquiring new Bitcoins, further strengthening its position in the cryptocurrency market.
A risky but potentially lucrative bet
Since August 2020, MicroStrategy has invested $8.3 billion in Bitcoin, generating an annual return of approximately 44%, far outpacing the S&P 500’s 12% annual growth. Despite a recent 4.9% decline in MSTR stock and a 30% decline since its March peak, the company remains committed to its strategy. MicroStrategy founder Michael Saylor continues to bet on growing adoption of BTC by institutions and individual investors.
MicroStrategy continues to stick to its bold vision of Bitcoin as a future store of value. This new fundraising confirms the company’s commitment to its crypto strategy, despite challenges and criticism.
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