MicroStrategy has completed an $800 million convertible note offering to acquire more Bitcoin and for general corporate purposes.
MicroStrategy, one of the largest public holders of Bitcoin, announced on June 20 that it finalized its offering of 2.25% convertible senior notes due 2032. The total principal amount of the notes sold was $800 million, which included $100 million from an option to purchase. The initial purchasers exercised the purchase agreement in full on June 17, followed by another purchase on June 18.
From this offering, MicroStrategy netted approximately $786 million after deducting discounts, commissions, and estimated offering expenses. The company plans to use these proceeds to buy additional Bitcoin and for other corporate needs.
In a separate announcement, MicroStrategy revealed it acquired 11,931 Bitcoin for $786 million using the proceeds from the convertible notes and excess cash at an average price of $65,883 per BTC. As of June 20, MicroStrategy holds a total of 226,331 BTC acquired at an average price of $36,798 per BTC, amounting to roughly $8.33 billion.
MicroStrategy, previously led by its founder Michael Saylor, entered the Bitcoin market in August 2020 with a $250 million purchase, making Bitcoin its primary reserve currency. The company has since continued to purchase Bitcoin regularly.
In the first quarter of 2024, MicroStrategy reported a net loss of $53.1 million. Despite the significant investment in Bitcoin, which has surged roughly 700% since early 2020, the company continued to face financial losses. MicroStrategy has yet to adopt the new digital asset fair value accounting standard, which would reflect BTC price movements in market value.
