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MicroStrategy announced this Thursday (20) the purchase of an additional 11,931 BTC, bringing its total reserves to 226,331 BTC. With this acquisition, the company now holds approximately 1% of all existing Bitcoin, consolidating itself as one of the main players in the cryptocurrency market.

The recent purchase, valued at $786 million, was financed through the company’s recent convertible debt offering, which successfully raised $800 million. The company acquired each Bitcoin at an average price of US$65,883, as announced by MicroStrategy’s executive president, Michael Saylor, on his social networks.

“MicroStrategy acquired an additional 11,931 BTC for approximately $786 million using the proceeds of convertible notes and excess cash, at an average price of $65,883 per Bitcoin. As of June 20, 2024, the company has 226,331 BTC purchased for approximately US$8.33 billion, with an average price of US$36,798 per Bitcoin”, highlighted Saylor.

MicroStrategy adquire mais Bitcoin

This move marks yet another debt offering from MicroStrategy, with investors willing to accept the minimum annual yield of 2.25% offered by the company’s convertible bonds.

Alternatively, investors can convert their investment into MSTR shares at a rate of $2,043.32 per share, approximately 35% above the current market price, if the value of the shares exceeds this value before the bonds mature on March 15. June 2032.

This strategy effectively functions as a call option on MSTR shares for bond investors, with the minimal promise of getting their money back plus a small yield if things don’t go as expected.

MicroStrategy’s massive acquisition of Bitcoin has had a significant impact on the market. The company has converted almost its entire balance sheet into BTC, with the coins now worth $14.7 billion. Before the most recent purchase, the company recorded an unrealized profit of 83.7% ($6.3 billion) on its Bitcoin.

MSTR’s share price has been following the price of Bitcoin in recent years. Experts such as James Butterfill, head of research at CoinShares, refer to the company’s actions as a “leveraged play on Bitcoin prices.” After all, stock prices generally move in line with the cryptocurrency.

According to Saylor, the company is a type of Bitcoin ETF with advantages including the use of moderate leverage and no management fees.

On the other hand, critics point out that the company is overvalued compared to Bitcoin ETFs. This is because its market value is US$26 billion. This corresponds to almost double the size of its Bitcoin assets under management.

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