Breaking: MicroStrategy Scoops 11,931 Bitcoins Using $800 Million Convertible Note Proceeds

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As a seasoned crypto investor with a keen interest in MicroStrategy’s Bitcoin acquisitions, I find Michael Saylor’s latest announcement incredibly exciting. With MicroStrategy now holding a total of 226,331 Bitcoins, the company has solidified its position as one of the largest institutional Bitcoin holders in the world. The average purchase price of $36,798 per BTC is a testament to their long-term belief in the potential of this digital asset.

Expert: Michael Saylor, Executive Chairman of MicroStrategy, revealed that his company has bought an extra 11,931 Bitcoins at approximately $65,883 per coin on average. This news has contributed to a rise in Bitcoin’s price, which is now trading 1.46% higher at $65,995 and boasts a market capitalization of $1.3 trillion.

MicroStrategy Raises $800 Million From Convertible Notes

Approximately 10 days ago, MicroStrategy (NASDAQ: MSTR) disclosed its intention to sell $800 million worth of convertible notes to boost its Bitcoin investments. Maturity for these notes is scheduled for 2032, with a fixed interest rate of 2.25%, paid twice per year starting December 15, 2024. Essentially, MicroStrategy’s unsecured, senior debt obligations correspond to these convertible notes.

These notes may be transformed into either cash or MicroStrategy Class A common shares, or a mix of both, based on the company’s decision. Before December 15, 2031, such transformations are permissible only under particular circumstances and during designated timeframes, as stated in MicroStrategy’s press release.

Michael Saylor revealed on social media that MicroStrategy now owns a grand total of 226,331 Bitcoins, which were purchased for an average cost of $36,798 per Bitcoin. This substantial investment amounts to around $8.33 billion in value.

MicroStrategy has bought an extra 11,931 Bitcoins for approximately $786 million using funds from convertible notes and surplus cash, with each Bitcoin costing around $65,883. As of June 20, 2024, MicroStrategy holds a total of 226,331 Bitcoins, which were purchased for approximately $8.33 billion at an average price of $36,798 per Bitcoin.

— Michael Saylor (@saylor) June 20, 2024

In the early trading hours before the market officially opens, the price of MicroStrategy (MSTR) shares has risen by 2.35%, surpassing the $1,500 mark. Since the start of 2024, there has been a remarkable increase of over 114% in the value of MSTR stocks. Intriguingly, MicroStrategy’s stock performance has outshined Bitcoin’s since the beginning of 2023. With a one-year growth rate of 338%, MSTR significantly outpaces Bitcoin’s 145% increase.

BTC Price Action

As a researcher studying the cryptocurrency market, I’ve noticed that the Bitcoin price has encountered some resistance around the $66,000 mark in recent days due to heavy selling pressure. Nevertheless, there are predictions from certain market analysts that if MicroStrategy goes ahead with converting its convertible notes into Bitcoins, we could witness a price surge and BTC potentially reaching $72,000 once again.

If the price of Bitcoin approaches $70,000 according to CoinGlass data, it could lead to the liquidation of a substantial $1.67 billion worth of short positions.

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2024-06-20 16:26